Commodities: Broad Market

USCI Top Performer Intra-day
Price $38.62
Today’s Change +0.04%(0.10)
4:00pm 07/21/2017
GSP Bottom Performer Intra-day
Price $12.77
Today’s Change -0.27%(-2.07)
3:25pm 07/21/2017
  • Overview
  • Efficiency
  • Tradability
  • Fit

ETF.com Insight

The broad commodity ETF space has no clear winner. There's no "right" way to index commodities, so many disparate choices here are equally valid.
We've chosen toDBC isn't perfectly neutral, but its strategy makes sense benchmark against the popular S&P GSCI, a production-weighted index which gives nearly 3/4 of its weight to energy, and nearly 1/2 to oil alone. Two funds—GSG and GSP—track this index directly, while others track variations.
Another established choice is the Bloomberg Commodity index (formerly the Dow Jones-UBS Commodity Index). It takes a more nuanced view by weighting its components by both production and liquidity, and capping exposures at both the commodity and sector levels. DJCI and DJP track it directly.
Alternative strategies abound, with funds that select and/or weight their holdings by things like consumption, contango, or momentum. At the extreme is FTGC, the first actively-managed commodity ETF.
Many funds in the space attempt to mitigate the effects of contango. This could be as simple as holding a fixed ladder of contracts up to a year out, or it could mean complex optimization schemes. Most of these funds cost more than their front-month counterparts.
You'll also need to make a decision about structure. Commodity pools have complex tax implications that could help or hinder you. ETNs are simpler at tax time, but come with counterparty risk.
Finally, you'll need to be sure the fund you want is accessible. Traders who demand liquidity above all else will want to stick with DBC or DJP, but plenty of other options exist for those who don't mind slightly higher trading costs. Be aware that about half the funds in the segment see subpar tradability, ranging from somewhat illiquid to untradeable at all sizes. A handful of funds are at risk of closure due to weak investor interest.
We've chosen DBC as our Analyst Pick. It isn't perfectly neutral, but its strategy makes sense—it caps our benchmark's heavy weighting to energy, while optimizing contract selection. It's also eminently liquid. (Insight updated 07/21/17)

All Funds (26)

PDBC $437.63 M 437628512 New; No K-1

B 0
E
82
82
T
98
98
F
0
-1

GCC $166.01 M 166010323.625 Expensive

C 5
E
80
80
T
80
80
F
5
5

DJCI $71.67 M 71671451.904 Cheapest in segment

C 48
E
82
82
T
60
60
F
48
48

BCM $47.57 M 47571115.5093 Optimized version of DJP

C 24
E
79
79
T
65
65
F
24
24

DJP $716.4 M 716401994.9184 Liquid ETN

C 18
E
72
72
T
99
99
F
18
18

USCI $486.39 M 486386545 Selects by contango

C 11
E
66
66
T
96
96
F
11
11

UCI $83.24 M 83240137.7883 Cheap alternative take

C 0
E
76
76
T
63
63
F
0
-1

FTGC $138.62 M 138615964.89012 Active 40 Act ETF

C 0
E
75
75
T
82
82
F
0
-1

GSG $1.15 B 1153798750 Commodity pool version of GSP

D 91
E
59
59
T
98
98
F
91
91

SBV $615.63 K 615625.021 High closure risk

D 62
E
73
73
T
59
59
F
62
62

RJI $202.0 M 202000000 Broadest exposure

D 28
E
57
57
T
72
72
F
28
28

DBC $1.8 B 1802472228.6483 Most liquid

D 26
E
58
58
T
98
98
F
26
26

CMDT $22.99 M 22993165 High closure risk

D 0
E
63
63
T
53
53
F
0
-1

GSC $114.83 M 114828400 Very expensive

F 88
E
51
51
T
48
48
F
88
88

GSP $21.91 M 21906517.3756 ETN version of GSG

F 0
E
57
57
T
66
66
F
0
-1

DWAC $2.42 M 2419348.386 N/A

F 0
E
61
61
T
0
-1
F
0
-1

RCOM $9.97 M 9972049.86 N/A

F 0
E
68
68
T
0
-1
F
0
-1

BCD $3.67 M 3670524.47 N/A

N/A 0
E
0
-1
T
0
-1
F
0
-1

UCIB $20.68 M 20677050 same index as UCI

N/A 0
E
0
-1
T
0
-1
F
0
-1

BCI $78.11 M 78112024.41 N/A

N/A 0
E
0
-1
T
0
-1
F
0
-1

COMB $3.75 M 3750904 N/A

N/A 0
E
0
-1
T
0
-1
F
0
-1

COMG $2.46 M 2456466 N/A

N/A 0
E
0
-1
T
0
-1
F
0
-1

COM $14.14 M 14136023.56 N/A

N/A 0
E
0
-1
T
0
-1
F
0
-1

CSCR $1.01 M 1006916.202321 High closure risk

F 16
E
63
63
T
38
38
F
16
16

DPU $394.8 K 394800 Closed to creations

F 62
E
66
66
T
30
30
F
62
62

CSCB $1.11 M 1110000 High closure risk

D 32
E
76
76
T
37
37
F
32
32

ETF.com Grade as 07/13/17

Commodities: Broad Market

Performance Dispersion
Performance  [as of 07/20/17] 1 Month 3 Month YTD 1 Year 3 Years 5 Years 10 Years
Benchmark: S&P GSCI5.91%-3.17%-8.86%-2.32%-23.40%-14.95%--
B 0PDBC437628512PDBCPowerShares Optimum Yield Diversified Commodity Strategy No K-1 Portfolio5.60%-3.09%-7.29%0.20%------
C 5GCC166010323.625GCCWisdomTree Continuous Commodity Index Fund4.03%0.50%-1.73%-4.84%-10.89%-8.66%--
C 48DJCI71671451.904DJCIETRACS Bloomberg Commodity Index Total Return ETN4.57%-0.69%-4.36%-1.88%-14.14%-11.19%--
C 24BCM47571115.5093BCMiPath Pure Beta Broad Commodity ETN4.67%-1.31%-3.06%-0.27%-13.15%-9.82%--
C 18DJP716401994.9184DJPiPath Bloomberg Commodity Index Total Return ETN5.08%-1.03%-5.16%-1.88%-15.24%-12.03%-7.84%
C 11USCI486386545USCIUnited States Commodity Index Fund3.79%-0.87%-3.55%-7.55%-12.72%-9.17%--
C 0UCI83240137.7883UCIETRACS UBS Bloomberg Constant Maturity Commodity Index TR ETN5.20%-0.72%-3.17%2.38%-12.97%-9.14%--
C 0FTGC138615964.89012FTGCFirst Trust Global Tactical Commodity Strategy Fund3.95%-0.63%-2.52%-6.11%-14.86%----
D 91GSG1153798750GSGiShares S&P GSCI Commodity Indexed Trust5.67%-3.28%-9.57%-3.01%-24.15%-15.69%-10.81%
D 62SBV615625.021SBViPath Pure Beta S&P GSCI-Weighted ETN-4.19%-11.40%-11.36%-7.66%-23.56%-13.28%--
D 28RJI202000000RJIElements Rogers International Commodity Index-Total Return ETN4.90%-2.19%-5.20%-0.51%-15.84%-10.78%--
D 26DBC1802472228.6483DBCPowerShares DB Commodity Index Tracking Fund5.47%-3.17%-7.51%-0.14%-16.89%-11.94%-5.34%
D 0CMDT22993165CMDTiShares Commodity Optimized Trust4.27%-1.53%-3.84%-1.83%-12.00%----
F 88GSC114828400GSCGS Connect S&P GSCI Enhanced Commodity TR Strategy ETN8.59%-6.90%-9.98%-2.24%-23.79%-15.45%--
F 0GSP21906517.3756GSPiPath S&P GSCI Total Return Index ETN6.89%-4.40%-11.05%-3.48%-26.47%-17.32%-11.61%
F 0DWAC2419348.386DWACElkhorn Commodity Rotation Strategy ETF-0.13%-1.31%-2.03%--------
F 0RCOM9972049.86RCOMElkhorn Fundamental Commodity Strategy ETF-2.68%-4.50%-3.44%--------
N/A 0BCD3670524.47BCDETFS Bloomberg All Commodity Longer Dated K-1 Free Strategy ETF4.21%-1.53%----------
N/A 0UCIB20677050UCIBETRACS CMCI Total Return ETN Series B-14.98%-20.35%-20.78%-11.64%------
N/A 0BCI78112024.41BCIETFS Bloomberg All Commodity Strategy K-1 Free ETF4.53%-1.33%----------
N/A 0COMB3750904COMBGraniteShares Bloomberg Commodity Broad Strategy No K-1 ETF4.08%------------
N/A 0COMG2456466COMGGraniteShares S&P GSCI Commodity Broad Strategy No K-1 ETF-3.12%------------
N/A 0COM14136023.56COMDirexion Auspice Broad Commodity Strategy ETF-2.45%-6.35%----------
F 16CSCR1006916.202321CSCRCredit Suisse X-Links Commodity Rotation ETN-2.55%-4.36%-4.36%-5.41%-13.96%----
F 62DPU394800DPUDB Commodity Long ETN51.99%7.14%7.14%-15.20%-17.69%-14.92%--
D 32CSCB1110000CSCBCredit Suisse X-Links Commodity Benchmark ETN0%-10.77%0%-20.43%------
All returns over 1 year are annualized. All returns are total returns unless otherwise stated.

ETF.com Efficiency Insight

DJCI has an edge over its peers in Efficiency thanks to a lowest-in-class expense ratio, excellent tracking and a tax-advantaged structure. The ETN charges just 50 bps, lags its indexFor those willing to pay a bit more, the range of options widens considerably within by roughly the amount of its fee, and is taxed at ordinary capital gains rates. In contrast, the remaining funds charge 55-125 bps and many follow their indexes at a much wider pace.
That said, most funds in the broad commodities segment are at least viable, and track more or less in line with their fees. For those investors willing to pay a bit more, the range of options widens considerably.
One of the more important considerations here is fund structure. Most of the segment is made up of ETNs, which are taxed at normal capital gains rates and have no special tax implications. They do, however, come with counterparty risk—currently low for all funds.
A handful of funds are structured as commodity pools. These distribute a K-1 at tax time and are marked to market, meaning you will be taxed on all gains and losses at year-end whether you sell or not, at a blended long-term/short-term rate.
Two somewhat recent launches, FTGC and PDBC, are structured as open-ended 1940 Act funds. That's the most common structure for equity funds, but it was unheard of in the commodity space until 2013.
About 1/3 of the funds in this segment are at high risk of closure due to little or no investor interest. Most of these are ETNs, which sometimes "close" by de-listing without returning capital, leaving investors to either hold their shares until a distant maturity date or try to sell them OTC, a particularly nasty dilemma. We recommend caution in holding these funds. (Insight updated 07/21/17)

All Funds (26)

82
81.928742
82
81.51597
80
79.959158
79
79.223266
76
76.109386
75
75.135135
73
73.331335
72
72.082568
68
67.810311
66
65.819263
63
62.592613
61
61.478775
59
58.529608
58
58.403533
57
57.475966
57
56.817368
51
51.257541
N/A
0
N/A
0
N/A
0
N/A
0
N/A
0
N/A
0
63
63.114958
66
66.14409643339
76
75.505219103754

ETF.com Grade as 07/13/17

Commodities: Broad Market

Tracking Difference (12 Month)

Ticker Expense Ratio Median Max. Upside Max. Downside Max LT/ST Cap Gains Rate Rule Legal Structure Fund Closure Risk Efficiency
BCM iPath Pure Beta Broad Commodity ETN 0.70% -0.63% -0.52% -0.78% 20.00% / 39.60% Medium 79.223266
GSG iShares S&P GSCI Commodity Indexed Trust 0.80% -0.99% -0.21% -2.20% 27.84% / 27.84% Low 58.529608
BCD ETFS Bloomberg All Commodity Longer Dated K-1 Free Strategy ETF 0.29% -- -- -- 20.00% / 39.60% Low 0
CMDT iShares Commodity Optimized Trust 0.80% -1.14% -0.80% -1.56% 27.84% / 27.84% High 62.592613
GSP iPath S&P GSCI Total Return Index ETN 0.75% -1.77% 6.13% -4.16% 20.00% / 39.60% High 57.475966
BCI ETFS Bloomberg All Commodity Strategy K-1 Free ETF 0.29% -- -- -- 20.00% / 39.60% Low 0
PDBC PowerShares Optimum Yield Diversified Commodity Strategy No K-1 Portfolio 0.60% -- -- -- 20.00% / 39.60% Low 81.928742
COMB GraniteShares Bloomberg Commodity Broad Strategy No K-1 ETF 0.25% -- -- -- 20.00% / 39.60% Low 0
RJI Elements Rogers International Commodity Index-Total Return ETN 0.75% 0.01% 1.13% -1.83% 20.00% / 39.60% Low 56.817368
COMG GraniteShares S&P GSCI Commodity Broad Strategy No K-1 ETF 0.35% -- -- -- 20.00% / 39.60% Low 0
DBC PowerShares DB Commodity Index Tracking Fund 0.89% -1.30% -0.75% -2.46% 27.84% / 27.84% Low 58.403533
SBV iPath Pure Beta S&P GSCI-Weighted ETN 0.85% -0.54% -0.45% -0.76% 20.00% / 39.60% High 73.331335
DJCI ETRACS Bloomberg Commodity Index Total Return ETN 0.50% -0.54% 0.66% -1.00% 20.00% / 39.60% Low 81.51597
UCI ETRACS UBS Bloomberg Constant Maturity Commodity Index TR ETN 0.55% -- -- -- 20.00% / 39.60% Low 76.109386
DJP iPath Bloomberg Commodity Index Total Return ETN 0.70% -0.86% 2.50% -2.05% 20.00% / 39.60% Low 72.082568
UCIB ETRACS CMCI Total Return ETN Series B 0.55% -- -- -- 20.00% / 39.60% High 0
USCI United States Commodity Index Fund 1.02% -1.38% -0.89% -1.67% 27.84% / 27.84% Low 65.819263
FTGC First Trust Global Tactical Commodity Strategy Fund 0.95% -- -- -- 20.00% / 39.60% Low 75.135135
DWAC Elkhorn Commodity Rotation Strategy ETF 0.99% -- -- -- 20.00% / 39.60% High 61.478775
GCC WisdomTree Continuous Commodity Index Fund 0.89% -1.23% -1.02% -1.46% 27.84% / 27.84% Low 79.959158
RCOM Elkhorn Fundamental Commodity Strategy ETF 0.75% -- -- -- 20.00% / 39.60% High 67.810311
GSC GS Connect S&P GSCI Enhanced Commodity TR Strategy ETN 1.25% -1.49% -0.59% -2.07% 20.00% / 39.60% Low 51.257541
COM Direxion Auspice Broad Commodity Strategy ETF 0.70% -- -- -- 20.00% / 39.60% Low 0
CSCR Credit Suisse X-Links Commodity Rotation ETN -0.80% -0.54% -0.96% 20.00% / 39.60% Closing 63.114958
DPU DB Commodity Long ETN -0.72% -0.44% -1.14% 20.00% / 39.60% High 66.14409643339
CSCB Credit Suisse X-Links Commodity Benchmark ETN -0.48% -0.40% -0.67% 20.00% / 39.60% Closing 75.505219103754

ETF.com Tradability Insight

There are two highly liquid funds in the broad basket commodities segment; DBC and DJP. DBC is by far the most frequently traded, with over $40M changing hands on a typical day, while DJPDBC is by far the most frequently traded sees about half that. That's enough volume to accommodate multiple creations and redemptions daily for both funds. The two funds also see the segment's narrowest average trading spreads.
Moving down the rankings, you will find multiple funds with more than enough volume for most retail traders, and average spreads that are a notch wider than the two segment leaders but still very workable. USCI in particular stands out for its tight spreads and strong volume.
Be careful trading funds with less than about $1M changing hands daily. The spread figures here are only the average inside spread, and the low volume of these funds implies that even modestly sized trades could blow open the order book. Near the bottom of the list are several highly illiquid funds that often go days or weeks with no trades at all.
Lastly, beware of DPU. It's been closed to creations since 2012 and is extremely illiquid, leading it to trade at very wide premiums and discounts against its NAV. The fund is effectively untradeable at all sizes. (Insight updated 07/21/17)

All Funds (26)

99
99.09307
98
98.161514
98
97.79119
98
97.539384
96
96.105759
82
81.666029
80
79.736872
72
71.920693
66
65.910042
65
64.931103
63
63.165849
60
59.560245
59
59.20084
53
53.220105
48
48.265415
N/A
0
N/A
0
N/A
0
N/A
0
N/A
0
N/A
0
N/A
0
N/A
0
38
37.507299
30
30
37
37.3421488

ETF.com Grade as 07/13/17

Commodities: Broad Market

Ticker Median Daily Volume ($) Average Spread Creation Unit/Day Market Hours Overlap Underlying Volume/Unit % Creation Cost Per Unit (%) Impediment to Creations Score - Tradability
UCI ETRACS UBS Bloomberg Constant Maturity Commodity Index TR ETN $224.35 K 0.43% 0.33 100.00% -- 0% Potential 63.165849
BCM iPath Pure Beta Broad Commodity ETN $85.08 K 0.27% 0.07 100.00% -- 0% None 64.931103
UCIB ETRACS CMCI Total Return ETN Series B $0 1.18% 0 100.00% -- 0% None 0
CMDT iShares Commodity Optimized Trust $15.94 K 0.60% 0.01 100.00% -- 0% None 53.220105
USCI United States Commodity Index Fund $1.71 M 0.12% 0.91 100.00% -- 0.02% None 96.105759
DWAC Elkhorn Commodity Rotation Strategy ETF $0 0.99% 0 -- -- 0.04% None 0
RCOM Elkhorn Fundamental Commodity Strategy ETF $0 1.75% 0 -- -- 0.04% None 0
DBC PowerShares DB Commodity Index Tracking Fund $19.23 M 0.07% 6.53 100.00% -- 0.02% None 98.161514
COM Direxion Auspice Broad Commodity Strategy ETF $4.96 K 0.75% 0.00 100.00% -- 0.04% None 0
DJCI ETRACS Bloomberg Commodity Index Total Return ETN $48.0 K 0.33% 0.06 100.00% -- 0% Potential 59.560245
BCD ETFS Bloomberg All Commodity Longer Dated K-1 Free Strategy ETF $4.85 K 0.17% 0.00 100.00% -- 0.02% None 0
DJP iPath Bloomberg Commodity Index Total Return ETN $3.91 M 0.05% 5.55 100.00% -- 0% None 99.09307
BCI ETFS Bloomberg All Commodity Strategy K-1 Free ETF $38.9 K 0.11% 0.03 100.00% -- 0.02% None 0
COMB GraniteShares Bloomberg Commodity Broad Strategy No K-1 ETF $22.64 K 0.36% 0.02 -- -- 0.04% None 0
FTGC First Trust Global Tactical Commodity Strategy Fund $594.34 K 0.18% 0.61 100.00% -- 0.05% None 81.666029
COMG GraniteShares S&P GSCI Commodity Broad Strategy No K-1 ETF $0 0.51% 0 100.00% -- 0.04% None 0
GCC WisdomTree Continuous Commodity Index Fund $494.86 K 0.19% 0.53 100.00% -- 0.02% None 79.736872
GSC GS Connect S&P GSCI Enhanced Commodity TR Strategy ETN $4.42 K 0.64% 0.00 100.00% -- 0% Potential 48.265415
GSG iShares S&P GSCI Commodity Indexed Trust $2.69 M 0.09% 3.89 100.00% -- 0% None 97.79119
GSP iPath S&P GSCI Total Return Index ETN $75.18 K 0.27% 0.20 100.00% -- 0% None 65.910042
PDBC PowerShares Optimum Yield Diversified Commodity Strategy No K-1 Portfolio $2.32 M 0.08% 1.44 100.00% -- 0.03% None 97.539384
RJI Elements Rogers International Commodity Index-Total Return ETN $384.11 K 0.31% 0.16 100.00% -- 0% None 71.920693
SBV iPath Pure Beta S&P GSCI-Weighted ETN $0 0.38% 0 100.00% -- 0% None 59.20084
CSCR Credit Suisse X-Links Commodity Rotation ETN $0 0 100.00% -- 0.13% None 37.507299
DPU DB Commodity Long ETN $0 0 100.00% -- 0.31% Full 30
CSCB Credit Suisse X-Links Commodity Benchmark ETN $0 0 100.00% -- 0.13% None 37.3421488

ETF.com/ Block Liquidity

BCM
5
4
3
2
1
CMDT
5
4
3
2
1
DBC
5
4
3
2
1
DJP
5
4
3
2
1
FTGC
5
4
3
2
1
GCC
5
4
3
2
1
GSG
5
4
3
2
1
GSP
5
4
3
2
1
PDBC
5
4
3
2
1
RJI
5
4
3
2
1
SBV
5
4
3
2
1
UCIB
5
4
3
2
1
USCI
5
4
3
2
1
COM
5
4
3
2
1
BCD
5
4
3
2
1
BCI
5
4
3
2
1
COMG
5
4
3
2
1
DJCI
5
4
3
2
1
GSC
5
4
3
2
1
UCI
5
4
3
2
1
DWAC
5
4
3
2
1
RCOM
5
4
3
2
1
COMB
5
4
3
2
1
CSCR
5
4
3
2
1
DPU
5
4
3
2
1
CSCB
5
4
3
2
1

This measurement shows how easy it is to trade 25,000 shares of each ETF.

ETF.com Fit Insight

The broad commodity baskets differ greatly from each other. The commodities space is a difficult one to index, and each index provider approaches it in a different way. For example, theThe commodities space is difficult to index most commonly cited index, the S&P GSCI, is a production-weighted index of 24 commodities. It heavily weights energy, and crude oil in particular. In contrast, the Dow Jones-UBS Commodity Index caps individual commodities and commodity sector weights to produce a more balanced portfolio, and there are a dozen variations in between. Since the indexes pick commodities and determine commodity weights differently, it's no surprise that the resulting portfolios are enormously different.
The range of funds is plain to see, even just looking at the sector allocations. GSC, GSG, GSP and SBV—which track versions of the GSCI—allocate about 72% of their portfolios to energy, leaving about 18% for agriculture and livestock, and about 10% for the various metals.
At the other end of the spectrum, GCC equally weights its 17 commodities, resulting in an energy allocation of just 18% and an agriculture allocation of nearly 60%. USCI also equally weights its commodities—which it selects dynamically based on momentum and term structure—and allocates 21% to energy and 64% to the ags, as of this writing.
In between are the products that track versions of the Dow Jones-UBS index—DJP, and DJCI—with about 30% in energy, 15-30% in agriculture and 20-30% in metals. BCM, UCI, RGRC and RJI also hold reasonably balanced portfolios, with 35-45% in energy each. The last products—DBC, DPU, CSCB and CSCR—have much higher allocations to energy (about 50-60% each), but are still more balanced than the GSCI-based products.
Although all of the broad commodities baskets use futures contracts for their exposure, they pick them in different ways. DJCI, DJP, GSG, GSP and RJI hold the front-month (or nearest-to-expire) contracts on each of their commodities, while the other products dynamically pick contracts to try to dampen contango. The choice of contract can sometimes have as big of an impact on performance as the choice of commodity, so neither can be safely ignored in your quest for the right commodities fund.
Ultimately, investors will need to look carefully at each commodity basket to find the one that comes closest to their needs, while ensuring that the methodology for picking and rolling futures contracts is also in line with expectations. (Insight updated 07/21/17)

All Funds (26)

91
91
88
88
62
62
5
5
48
48
28
28
26
26
24
24
18
18
11
11
N/A
0
N/A
0
N/A
0
N/A
0
N/A
0
N/A
0
N/A
0
N/A
0
N/A
0
N/A
0
N/A
0
N/A
0
N/A
0
16
16
62
62
32
32

ETF.com Grade as 07/13/17

Commodities: Broad Market