Commodities: Broad Market
With 23 ETFs and over $7.85B in combined AUM, the Commodities: Broad Market segment provides exposure to the Global space with a focus on Broad Market securities.
Year-to-date, the best-performing ETF in the segment is the iPath Pure Beta S&P GSCI-Weighted ETN (SBV), with a total return of 8.15%. Meanwhile, the most popular ETF is the PowerShares DB Commodity Index Tracking Fund (DBC) with $2.53BB in assets under management.
Investors should take a look at the iShares S&P GSCI Commodity Indexed Trust (GSG). This fund has been chosen as an Analyst Pick by FactSet, thus is the best ETF for the average investor. The iShares S&P GSCI Commodity-Indexed Trust uses index futures contracts to gain exposure to a production-weighted index of front-month commodities futures contracts. GSG has an expense ratio of 0.80% and tracks the S&P GSCI.
ETF.com Efficiency Insight
The average efficiency score in the Commodities: Broad Market segment is 72 out of 100, with the ETFS Bloomberg All Commodity Strategy K-1 Free ETF(BCI) obtaining the highest rating of 88 out of 100.
Costs dominate the discussion around efficiency. ETFs in the segment have an average expense ratio of 0.71% per year, with the ETFS Bloomberg All Commodity Longer Dated K-1 Free Strategy ETF (BCD) having the lowest expense ratio, charging investors 0.29% yearly.
Investors should look for funds with tight tracking, such as the Elements Rogers International Commodity Index-Total Return ETN (RJI), with a 12-month median tracking difference of 0.01%.
ETF.com Tradability Insight
The average tradability score in the Commodities: Broad Market segment is 72 out of 100, with the iPath Bloomberg Commodity Index Total Return ETN(DJP) obtaining the highest rating of 99 out of 100.
The PowerShares DB Commodity Index Tracking Fund (DBC) is the undisputed segment leader when it comes to liquidity. The fund trades 64.52M in daily average volume. Investors should also find ample liquidity in the PowerShares Optimum Yield Diversified Commodity Strategy No K-1 Portfolio (PDBC), with $17.29M in daily dollar volume.
Use limit orders to trade funds such as the GS Connect S&P GSCI Enhanced Commodity TR Strategy ETN(GSC), due to their double-digit market spreads.
ETF.com Fit Insight
The S&P GSCI has been selected as the index that most accurately represents the market in question. The benchmark has been selected by the ETF Analytics team at FactSet, according to a series of guidelines to ensure this index accurately captures its market.
Investors trying to match a broad market exposure should pay attention to GSG. This fund obtains a high Fit score and investors should capture market-like returns.
Other funds diverge from the market, by nature of their investment mandates; for example, FTGC follows a Active strategy and obtains a low Fit score compared with our neutral benchmark.