Commodity Funds Soar, But Can It Last?

In addition, rising prices motivates providers to find ways of boosting supply and thereby reverse inflationary trends. Herds are increased, new land is cultivated, exploration for minerals is intensified and, given time, supplies are brought to market in quantities than can unexpectedly reverse price trends.

Before jumping aboard the increasingly fashionable commodities bandwagon, it might be worth recalling a famous wager made in this arena.

At the end of the inflationary 1970s, when many pundits were forecasting even greater price increase in the coming decade, economist Julian L. Simon made what has thereafter been known simply as "The Bet" with neo-Malthusian author Paul Ehrlich. They wagered the grand sum of $1,000 that Ehrlich couldn't name five commodities that would rise in price over the 10-year period beginning Sept. 29, 1980.

Ehrlich picked five industrial metals, not one of which was priced higher on that same date in 1990.

"COMMODITY" OPEN-END MUTUAL FUNDS
NAME, TICKER & TheStreet.com RATINGS GRADE *	MIN. INITIAL INVEST- MENT	ANN'L EXPENSE RATIO (%)	SALES CHARGE TYPE	3-MO. TOTAL RET'N (%)	COMMODITY EXPOSURE (FROM FUND STATEMENTS)
BlackRock Comm Strategies A (MDCDX) C-	$1,000	1.73	Front Load	24.51	Commodity linked derivative instrum'ts, U.S. gov't sec's and other debt obligations.
Direxion Commodity Bull 2X Fd (DXCLX) C-	$25,000	2.07	No Load	13.70	200% of the Morgan Stanley Commodity Related Index...at least 80% in equity sec's.
DWS Commodity Securities A (SKNRX) B-	$1,000	1.74	Front Load	8.73	Commodities related securities.
Goldman Sachs Commodity Stratg A (GSCAX) U	$1,000	1.27	Front Load	17.40	Benchmark perf. Of S&P GSCI Commodity Index - spectrum of commodities.
PIMCO Commodity Real Ret Str A (PCRAX) B+	$5,000	1.45	Front Load	28.64	Commodity-indexed-backed derivative securities.
Rydex Ser -Mngd Futures Strgy A (RYMTX) U	$2,500	1.81	Front Load	9.17	Match the daily performance of the S&P Diversified Trends Indicator.
Rydex Ser-Commodities Strgy A (RYMEX) U	$2,500	1.17	Front Load	17.09	Investment in commodity linked instruments.
AVERAGE				17.03
S&P 500 COMPOSITE TOTAL RETURN				-9.68
* "U" is unrated. Source: TheSteet.com Ratings. Data as of 2/29/2008.

"COMMODITY" ETFs & CLOSED-END FUNDS
NAME, TICKER & TheStreet.com RATINGS GRADE *	ANN'L EXPENSE RATIO (%)	3-MO. TOTAL RET'N (%)	COMMODITY EXPOSURE (FROM FUND STATEMENTS)
EXCHANGE TRADED FUNDS
ELEMENTS Rogers Int'l Commodity Index Agricul (RJA) U	0.75	N/A	Rogers Int'l Commodity Index Agriculture Total Ret'nSM of 20 agricultural commodity futures.
ELEMENTS Rogers Int'l Commodity Index Energy (RJN) U	0.75	N/A	Rogers Int'l Commodity Index Energy Total Ret'nSM of 6 energy commodity futures contracts.
ELEMENTS Rogers Int'l Commodity Index Metals Tot (RJZ) U	0.75	N/A	Linked to the performance of the Rogers Int'l Commodity Index Metals Total Ret'n SM.
ELEMENTS Rogers Int'l Commodity Index Total Ret'n (RJI) U	0.75	N/A	Rogers Int'l Commodity Index Total Ret'ns...of 36 commodity futures contracts.
iPath DowJones AIG Agriculture Total Ret'n Sub-Index (JJA) U	0.75	33.30	Linked to the performance of the Dow Jones AIG Agriculture Total Ret'n Sub Index.
iPath DowJones AIG Energy Total Ret'n Sub-Index (JJE) U	0.75	14.29	Linked to Dow Jones AIG Energy Total Ret'n Sub Index.
iPath DowJones-AIG Commodity Index Total Ret'n (DJP) A+	0.75	21.90	The Dow Jones AIG Commodity Index Total Ret'n.
iPath DowJones-AIG Copper Total Ret'n Sub-Index (JJC) U	0.75	23.96	Dow Jones AIG Copper Total Ret'n Sub Index of the Dow Jones AIG Commodity Index--copper.
iPath DowJones-AIG Grains Total Ret'n Sub-Index (JJG) U	0.75	31.30	Linked to the performance of the Dow Jones AIG Grains Total Ret'n Sub Index.
iPath DowJones-AIG Indust Metals Total Ret'n Sub-Idx (JJM) U	0.75	20.71	Benchmark for industrial metals sub index of the Dow Jones AIG Commodity Index.
iPath DowJones-AIG Livestock Total Ret'n Sub-Index (COW) U	0.75	-8.12	Benchmark for livestock sub index of the Dow Jones AIG Commodity Index.
iPath DowJones-AIG Nat. Gas Total Ret'n Sub-IdxSM (GAZ) U	0.75	23.99	iPath Dow Jones AIG Natural Gas Total Ret'n Sub Index SM ETN Index.
iPath S&P GSCI Crude Oil Total Ret'n Index (OIL) C	0.75	15.87	Goldman Sachs Commodity Index--West Texas Intermediate crude oil futures contract.
iPath S&P GSCI Total Ret'n Index (GSP) A-	0.75	17.46	Unleveraged investment in contracts comprising the S&P GSCI Total Ret'n Index.
iPathSM DowJones-AIG Nickel Total Ret'n Sub-Index (JJN) U	0.75	17.39	Dow Jones AIG Nickel Total Ret'n Sub-Index of the Dow Jones AIG Commodity Index.
iShares S&P GSCI Commodity-Indexed Trust (GSG) C+	0.75	17.36	Correspond generally (to the) S&P Goldman Sachs Commodity-Indexed Total ret'n Index.
PowerShares DB Commodity Index Tracking Fund (DBC) A+	0.83	21.98	Track the performance of the Deutsche Bank Liquid Commodity Index Excess Ret'n.
AVERAGE OF ABOVE ETFs		19.34
S&P 500 COMPOSITE TOTAL RETURN		-9.68
CLOSED-END FUND
DWS Global Commodities Fund (GCS)	1.09	6.82	Commodities-linked structured notes and futures contracts.
* "U" is unrated. Source: TheSteet.com Ratings. Data as of 2/29/2008.

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