Jan. 1, 2014 AUM: $3.07 million
2014 Inflows: $197.8 million
2014 Fund Growth: 6,450 percent
FTGC tops our list by a long shot, with a staggering 6,550 percent fund growth in 2014. The relatively new fund is the first actively managed broad commodity ETF. The fund manager selects contracts based on lower volatility and correlations relative to other commodities. FTGC has gained significant traction in 2014, now trading close to $1.7 million on most days at 17 basis point spreads.
Also worth note: FTGC is the first futures-based commodity ETF structured as a 1940 Act open-ended fund. It holds futures contracts through a subsidiary in the Cayman Islands, and caps this Cayman subsidiary to 25 percent of its weighting so it adheres to regulated investment company rules. This means FTGC doesn’t distribute K-1s, likely appealing to many retail investors.
At the time this article was written, the author held a long position in BBRC. Contact Dennis Hudachek at [email protected], or follow him on Twitter @Dennis_Hudachek.