Commodity ETFs In Free Fall ... Again

November 19, 2015

Commodities and their related ETFs are free-falling. After a brief period of calm during the past few months, major commodities are sinking once again. From metals to energy to agriculture, every segment of the market remains extremely weak.

The Bloomberg Spot Commodity Index, which is weighted based primarily on trading volumes, this week hit the lowest levels since the financial crisis and is down 16.2% year-to-date. The S&P GSCI Spot Index, which is weighted based on world production levels, is down 19.7%.

Bloomberg Spot Commodity Index & S&P GSCI Spot Index Since 2004

Due to the ill effects of roll costs from contango, ETFs tied to these indexes have performed even worse. The iPath Bloomberg Commodity Index Total Return ETN (DJP | C-18) lost 24.7 year-to-date, while the iShares S&P GSCI Commodity-Indexed Trust (GSG | D-91) shed 27.9%.

YTD Returns For DJP, GSG

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