Commodities: Broad Market
With 20 ETFs and over $5.70B 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 Direxion Auspice Broad Commodity Strategy ETF (COM), with a total return of -4.52%. Meanwhile, the most popular ETF is the Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF (PDBC) with $2.54BB 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. GSG uses index futures contracts to gain exposure to a production-weighted index of front-month commodities futures contracts. GSG has an expense ratio of 0.85% and tracks the S&P GSCI.
ETF.com Efficiency Insight
The average efficiency score in the Commodities: Broad Market segment is 74 out of 100, with the GraniteShares Bloomberg Commodity Broad Strategy No K-1 ETF(COMB) obtaining the highest rating of 93 out of 100.
Costs dominate the discussion around efficiency. ETFs in the segment have an average expense ratio of 0.66% per year, with the GraniteShares Bloomberg Commodity Broad Strategy No K-1 ETF (COMB) having the lowest expense ratio, charging investors 0.25% yearly.
Investors should look for funds with tight tracking, such as the iPath Pure Beta Broad Commodity ETN (BCM), with a 12-month median tracking difference of -0.30%.
ETF.com Tradability Insight
The average tradability score in the Commodities: Broad Market segment is 58 out of 100, with the Invesco DB Commodity Index Tracking Fund(DBC) obtaining the highest rating of 98 out of 100.
The Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF (PDBC) is the undisputed segment leader when it comes to liquidity. The fund trades 20.58M in daily average volume. Investors should also find ample liquidity in the Invesco DB Commodity Index Tracking Fund (DBC), with $12.54M 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, USCI follows a Optimized commodity strategy and obtains a low Fit score compared with our neutral benchmark.