Previously this index was only accessible as a futures product but now is also an ETF. The question becomes will it be available in the US? It just started trading so it may take a little while but if you have an account at Schwab or any other discount firm I would encourage you to ask if it will be available.
Please note I am not encouraging you to buy it but it provides an alternative to the lone (for now) commodity index ETF, DBC.
The Rogers index has 44% in energy, 35% in agriculture and 21% in metals with 35 different commodities in all. This compares to 55% in energy, 22.5% in agriculture and 22.5% in metals but only a total of six commodities for DBC.
In the short time for both, DBC has outperformed due, I believe, to DBC's heavier weight to oil. If there is a rotation into so called soft commodities I would expect the Rogers fund to out perform.
To be clear I am not trying to make a call about the immediate direction of commodities. This is an asset class that I believe in being exposed to for its diversification attributes. The possibility exists that this is the best way to capture the asset class, this is for you to decide for your own account but at a minimum it is worth exploring.
3 comments:
Thanks for the tip Roger, I'll start tracking that and give my broker a call too. No rush though, awful lot of churn going on. If this keeps up I may have to buy a couple big pharma just to calm my nerves, at least get paid for waiting; BAY and NVS might do it.
Yeah, I'm lovin' the DEO and NVS I picked up earlier in the year. Still would probably qualify as overweight commodities but not sure I need another white-knuckle holding.
To my inexperienced eye, the PIMCO fund PCRDX has a more even spread of the soft commodities. I read that they solved their problems with the IRS about the way the fund was structured. It's a little pricey with an expense ratio of 1.24% but it serves the purpose of giving me some exposure to an asset class I can't get to otherwise. Tom in Indy
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