Commodities: Broad Market

COMG Top Performer Intra-day
Price $27.01
Today’s Change +0.55%(2.09)
12:28pm 11/24/2017
DJCI Bottom Performer Intra-day
Price $15.87
Today’s Change -0.03%(-0.19)
9:36am 11/24/2017
  • 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 11/22/17)

All Funds (26)

DJP $792.62 M 792623306.5536 Liquid ETN

B 0
E
76
76
T
99
99
F
0
-1

BCI $82.36 M 82355025.34 N/A

B 0
E
88
88
T
75
75
F
0
-1

PDBC $645.63 M 645630336 New; No K-1

B 0
E
83
83
T
97
97
F
0
-1

BCM $51.98 M 51978318.214 Optimized version of DJP

C 0
E
80
80
T
63
63
F
0
-1

UCI $87.23 M 87234265.3098 Cheap alternative take

C 0
E
76
76
T
58
58
F
0
-1

BCD $3.84 M 3835525.57 N/A

C 0
E
80
80
T
66
66
F
0
-1

USCI $487.64 M 487640937 Selects by contango

C 0
E
68
68
T
91
91
F
0
-1

FTGC $195.4 M 195404571.6869 Active 40 Act ETF

C 0
E
75
75
T
84
84
F
0
-1

COMG $1.39 M 1388036 N/A

C 0
E
84
84
T
67
67
F
0
-1

GCC $161.02 M 161017354.17 Expensive

C 0
E
79
79
T
76
76
F
0
-1

DJCI $78.55 M 78546384.044 Cheapest in segment

C 0
E
84
84
T
57
57
F
0
-1

COM $34.92 M 34916024.08 N/A

C 0
E
75
75
T
58
58
F
0
-1

GSG $1.32 B 1322773580 Commodity pool version of GSP

D 0
E
59
59
T
97
97
F
0
-1

CMDT $14.67 M 14666080 High closure risk

D 0
E
62
62
T
58
58
F
0
-1

GSP $22.6 M 22596505.5456 ETN version of GSG

D 0
E
62
62
T
65
65
F
0
-1

COMB $10.37 M 10365972 N/A

D 0
E
81
81
T
0
-1
F
0
-1

RJI $232.32 M 232320000 Broadest exposure

D 0
E
57
57
T
75
75
F
0
-1

DBC $2.39 B 2389729024.4345 Most liquid

D 0
E
58
58
T
98
98
F
0
-1

SBV $682.34 K 682336.039 High closure risk

D 0
E
73
73
T
59
59
F
0
-1

DWAC $2.49 M 2485949.718 N/A

F 0
E
60
60
T
56
56
F
0
-1

RCOM $9.48 M 9480504.174 N/A

F 0
E
66
66
T
43
43
F
0
-1

GSC $114.83 M 114828400 Very expensive

F 0
E
51
51
T
38
38
F
0
-1

UCIB $22.39 M 22392300 same index as UCI

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 11/16/17

Commodities: Broad Market

Performance Dispersion
Performance  [as of 11/21/17] 1 Month 3 Month YTD 1 Year 3 Years 5 Years 10 Years
Benchmark: S&P GSCI4.24%9.90%0.92%10.84%-15.56%-12.91%--
B 0DJP792623306.5536DJPiPath Bloomberg Commodity Index Total Return ETN1.66%4.91%-1.28%2.09%-11.26%-10.88%-8.02%
B 0BCI82355025.34BCIETFS Bloomberg All Commodity Strategy K-1 Free ETF1.50%4.37%----------
B 0PDBC645630336PDBCPowerShares Optimum Yield Diversified Commodity Strategy No K-1 Portfolio4.16%10.52%2.78%7.86%-8.81%----
C 0UCI87234265.3098UCIETRACS UBS Bloomberg Constant Maturity Commodity Index TR ETN2.77%7.46%4.51%7.07%-7.39%-7.58%--
C 0BCM51978318.214BCMiPath Pure Beta Broad Commodity ETN0.88%5.16%2.74%6.06%-7.72%-8.78%--
C 0BCD3835525.57BCDETFS Bloomberg All Commodity Longer Dated K-1 Free Strategy ETF0.87%4.02%----------
C 0USCI487640937USCIUnited States Commodity Index Fund2.27%4.08%2.58%-0.92%-9.07%-7.07%--
C 0FTGC195404571.6869FTGCFirst Trust Global Tactical Commodity Strategy Fund1.92%4.49%1.42%1.02%-10.89%----
C 0GCC161017354.17GCCWisdomTree Continuous Commodity Index Fund1.11%3.23%-0.93%-1.54%-8.04%-8.46%--
C 0COMG1388036COMGGraniteShares S&P GSCI Commodity Broad Strategy No K-1 ETF3.83%8.16%----------
C 0DJCI78546384.044DJCIETRACS Bloomberg Commodity Index Total Return ETN1.74%4.17%-0.93%1.97%-10.38%-10.11%--
C 0COM34916024.08COMDirexion Auspice Broad Commodity Strategy ETF1.43%1.48%----------
D 0GSG1322773580GSGiShares S&P GSCI Commodity Indexed Trust4.73%11.65%0.32%6.72%-16.50%-13.67%-11.37%
D 0CMDT14666080CMDTiShares Commodity Optimized Trust1.68%4.27%0.00%6.05%-8.52%----
D 0GSP22596505.5456GSPiPath S&P GSCI Total Return Index ETN5.47%13.91%1.09%8.73%-18.15%-14.97%-12.00%
D 0COMB10365972COMBGraniteShares Bloomberg Commodity Broad Strategy No K-1 ETF1.46%4.45%----------
D 0RJI232320000RJIElements Rogers International Commodity Index-Total Return ETN2.92%7.13%1.35%4.99%-10.28%-9.35%-6.69%
D 0DBC2389729024.4345DBCPowerShares DB Commodity Index Tracking Fund4.49%11.19%2.90%8.09%-9.16%-10.24%-5.95%
D 0SBV682336.039SBViPath Pure Beta S&P GSCI-Weighted ETN0%%7.36%-4.84%-0.86%-17.05%-12.87%--
F 0DWAC2485949.718DWACElkhorn Commodity Rotation Strategy ETF3.40%6.14%1.26%1.63%------
F 0RCOM9480504.174RCOMElkhorn Fundamental Commodity Strategy ETF1.27%8.84%7.16%9.01%------
F 0GSC114828400GSCGS Connect S&P GSCI Enhanced Commodity TR Strategy ETN6.56%14.60%-0.32%7.19%-15.75%-13.54%-9.54%
N/A 0UCIB22392300UCIBETRACS CMCI Total Return ETN Series B4.70%4.70%4.13%9.35%------
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 11/22/17)

All Funds (26)

88
88.373399
84
84.175169
84
83.976626
83
82.954893
81
81.441148
80
80.46384
80
79.589549
79
79.310654
76
76.110021
76
75.766838
75
75.256654
75
75.126972
73
73.284227
68
68.213479
66
65.758874
62
62.480315
62
61.568043
60
60.214425
59
58.749597
58
58.403533
57
56.817579
51
51.259513
N/A
0
63
63.114958
66
66.14409643339
76
75.505219103754

ETF.com Grade as 11/16/17

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 79.589549
GSG iShares S&P GSCI Commodity Indexed Trust 0.80% -1.11% -0.21% -2.20% 27.84% / 27.84% Low 58.749597
BCD ETFS Bloomberg All Commodity Longer Dated K-1 Free Strategy ETF 0.29% -- -- -- 20.00% / 39.60% High 80.46384
CMDT iShares Commodity Optimized Trust 0.80% -1.24% -0.87% -1.56% 27.84% / 27.84% High 62.480315
GSP iPath S&P GSCI Total Return Index ETN 0.75% -0.18% 6.13% -3.51% 20.00% / 39.60% High 61.568043
BCI ETFS Bloomberg All Commodity Strategy K-1 Free ETF 0.29% -- -- -- 20.00% / 39.60% Low 88.373399
PDBC PowerShares Optimum Yield Diversified Commodity Strategy No K-1 Portfolio 0.60% -- -- -- 20.00% / 39.60% Low 82.954893
COMB GraniteShares Bloomberg Commodity Broad Strategy No K-1 ETF 0.30% -- -- -- 20.00% / 39.60% High 81.441148
RJI Elements Rogers International Commodity Index-Total Return ETN 0.75% 0.01% 1.13% -1.83% 20.00% / 39.60% Low 56.817579
COMG GraniteShares S&P GSCI Commodity Broad Strategy No K-1 ETF 0.40% -- -- -- 20.00% / 39.60% High 83.976626
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 73.284227
DJCI ETRACS Bloomberg Commodity Index Total Return ETN 0.50% -0.42% 0.66% -1.00% 20.00% / 39.60% Low 84.175169
UCI ETRACS UBS Bloomberg Constant Maturity Commodity Index TR ETN 0.55% -- -- -- 20.00% / 39.60% Low 76.110021
DJP iPath Bloomberg Commodity Index Total Return ETN 0.70% -0.50% 2.50% -2.05% 20.00% / 39.60% Low 75.766838
UCIB ETRACS CMCI Total Return ETN Series B 0.55% -- -- -- 20.00% / 39.60% High 0
USCI United States Commodity Index Fund 1.02% -1.55% -0.89% -1.89% 27.84% / 27.84% Low 68.213479
FTGC First Trust Global Tactical Commodity Strategy Fund 0.95% -- -- -- 20.00% / 39.60% Low 75.256654
DWAC Elkhorn Commodity Rotation Strategy ETF 0.99% -- -- -- 20.00% / 39.60% High 60.214425
GCC WisdomTree Continuous Commodity Index Fund 0.86% -1.12% -1.02% -1.46% 27.84% / 27.84% Low 79.310654
RCOM Elkhorn Fundamental Commodity Strategy ETF 0.75% -- -- -- 20.00% / 39.60% High 65.758874
GSC GS Connect S&P GSCI Enhanced Commodity TR Strategy ETN 1.25% -1.49% -0.59% -2.07% 20.00% / 39.60% Low 51.259513
COM Direxion Auspice Broad Commodity Strategy ETF 0.70% -- -- -- 20.00% / 39.60% High 75.126972
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 11/22/17)

All Funds (26)

99
98.75713
98
98.356507
97
97.452838
97
97.0303
91
91.18679
84
83.689904
76
76.360319
75
74.981423
75
74.725606
67
66.576159
66
66.186178
65
65.325272
63
62.68214
59
58.78585
58
58.055534
58
57.661618
58
57.661519
57
57.273308
56
56.398306
43
42.683242
38
37.5001
N/A
0
N/A
0
38
37.507299
30
30
37
37.3421488

ETF.com Grade as 11/16/17

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
BCM iPath Pure Beta Broad Commodity ETN $23.07 K 0.29% 0.02 100.00% -- 0.00%% None 62.68214
UCI ETRACS UBS Bloomberg Constant Maturity Commodity Index TR ETN $133.22 K 0.47% 0.18 100.00% -- 0.00%% Potential 58.055534
CMDT iShares Commodity Optimized Trust $17.58 K 0.45% 0.01 100.00% -- 0.00%% None 57.661618
UCIB ETRACS CMCI Total Return ETN Series B $0 0.99% 0 100.00% -- 0.00%% None 0
USCI United States Commodity Index Fund $883.9 K 0.11% 0.43 100.00% -- 0.02% None 91.18679
DWAC Elkhorn Commodity Rotation Strategy ETF $0 0.46% 0 100.00% -- 0.04% None 56.398306
DBC PowerShares DB Commodity Index Tracking Fund $21.16 M 0.06% 6.92 100.00% -- 0.02% None 98.356507
RCOM Elkhorn Fundamental Commodity Strategy ETF $0 0.90% 0 100.00% -- 0.04% None 42.683242
DJCI ETRACS Bloomberg Commodity Index Total Return ETN $27.64 K 0.39% 0.03 100.00% -- 0.00%% Potential 57.273308
COM Direxion Auspice Broad Commodity Strategy ETF $49.93 K 0.45% 0.04 100.00% -- 0.04% None 57.661519
DJP iPath Bloomberg Commodity Index Total Return ETN $2.33 M 0.06% 3.32 100.00% -- 0.00%% None 98.75713
BCD ETFS Bloomberg All Commodity Longer Dated K-1 Free Strategy ETF $0 0.13% 0.00 100.00% -- 0.02% None 66.186178
BCI ETFS Bloomberg All Commodity Strategy K-1 Free ETF $236.71 K 0.08% 0.20 100.00% -- 0.02% None 74.725606
FTGC First Trust Global Tactical Commodity Strategy Fund $574.51 K 0.15% 0.59 100.00% -- 0.05% None 83.689904
COMB GraniteShares Bloomberg Commodity Broad Strategy No K-1 ETF $48.47 K 0.11% 0.04 0.00%% -- 0.04% None 0
GCC WisdomTree Continuous Commodity Index Fund $379.46 K 0.17% 0.40 100.00% -- 0.02% None 76.360319
COMG GraniteShares S&P GSCI Commodity Broad Strategy No K-1 ETF $4.45 K 0.11% 0.00 100.00% -- 0.04% None 66.576159
GSC GS Connect S&P GSCI Enhanced Commodity TR Strategy ETN $0 1.51% 0.00 100.00% -- 0.00%% Potential 37.5001
GSG iShares S&P GSCI Commodity Indexed Trust $1.83 M 0.12% 2.42 100.00% -- 0.00%% None 97.0303
GSP iPath S&P GSCI Total Return Index ETN $36.27 K 0.22% 0.08 100.00% -- 0.00%% None 65.325272
PDBC PowerShares Optimum Yield Diversified Commodity Strategy No K-1 Portfolio $2.98 M 0.08% 1.77 100.00% -- 0.03% None 97.452838
RJI Elements Rogers International Commodity Index-Total Return ETN $493.57 K 0.30% 0.19 100.00% -- 0.00%% None 74.981423
SBV iPath Pure Beta S&P GSCI-Weighted ETN $0 0.38% 0 100.00% -- 0.00%% None 58.78585
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
DWAC
5
4
3
2
1
RCOM
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
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 11/22/17)

All Funds (26)

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
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 11/16/17

Commodities: Broad Market