The Best and Worst Commodities Funds
06/21/08 - 07:57 AM EDT
Kevin Baker
This week, we are looking at the funds directly linked to commodity prices. The commodity-linked securities in this article can provide portfolio diversification uncorrelated to stock market holdings.
The fund listed as the best performer in the week ended Thursday, June 19, is the DB Agriculture Long ETN(AGF Quote - Cramer on AGF - Stock Picks). As an exchange-traded note, the shares trade throughout the day just like exchange-traded funds -- but the shares are of a senior unsecured debt obligation from Deutsche Bank(DB Quote - Cramer on DB - Stock Picks) linked to the Deutsche Bank Liquid Commodity Optimum Yield Agriculture Index. As this illiquid ETN did not trade on June 11 or June 12, the return figure of 7.76% is calculated from the last trade on June 10 through the close on June 19. The fund's net-asset value movement of just 2.47% over the five trading days ending June 19 would not have made the top-10 list. The Agriculture ETN is included in honor of the Midwestern corn, wheat and soybean farmers suffering from the floods. The second fund on our best-performer list is the iPath Dow Jones AIG Copper Total Return Sub Index ETN(JJC Quote - Cramer on JJC - Stock Picks), up 6.88% for the week. iPath ETNs are Barclays Bank PLC(BCS Quote - Cramer on BCS - Stock Picks) unsecured debt instruments. In third place, the DB Gold Double Long ETN(DGP Quote - Cramer on DGP - Stock Picks) shined with a 6.60% return. The corresponding Deutsche Bank Liquid Commodity Optimum Yield Gold Index reflects the underlying gold futures contract prices. The comparable spot gold price gained 3.49%. The fourth- and fifth-place funds both focus on silver but differ dramatically in investment strategy. The PowerShares DB Silver Fund(DBS Quote - Cramer on DBS - Stock Picks), at 5.10%, did marginally better with its portfolio of silver futures contracts than the 4.91% return in iShares Silver Trust holding a bank vault full of silver bullion bars.| Best-Performing Commodity-Linked Funds for Week Ending Thursday, June 19 | ||||||
| Fund | Ticker | Rating | Fund Type | 1 Week Total Return | ||
| DB Agriculture Long ETN | AGF | U | ETN | 7.76%* | ||
| iPath Dow Jones AIG Copper Total Return Sub Index ETN | JJC | U | ETN | 6.88% | ||
| DB Gold Double Long ETN | DGP | U | ETN | 6.60% | ||
| PowerShares DB Silver Fund | DBS | B+ | ETF | 5.10% | ||
| iShares Silver Trust | SLV | C | ETF | 4.91% | ||
| Direxion Commodity Bull 2X Fund | DXCLX | C- | Open-End | 4.88% | ||
| PowerShares DB Base Metals Fund | DBB | E- | ETF | 4.78% | ||
| ELEMENTS Linked to the MLCX Precious Metals Index | PMY | U | ETF | 4.62% | ||
| DB Commodity Long ETN | DPU | U | ETN | 4.49% | ||
| DB Agriculture Double Long ETN | DAG | U | ETN | 3.98% | ||
| * Due to the lack of trades on 6/11 & 6/12, this figure was calculated from the last trade on 6/10/2008. Source: Bloomberg & TheStreet.com Ratings |
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| Worst-Performing Commodity-Linked Funds for Week Ending Thursday, June 19 | ||||||
| Fund | Ticker | Rating | Fund Type | 1 Week Total Return | ||
| MACROshares Oil Down Tradeable Trust | DCR | E- | ETF | -55.56% | ||
| IPATH Dow Jones AIG Nickel Total Return Sub Index ETN | JJN | U | ETN | -8.89% | ||
| DB Gold Double Short ETN | DZZ | U | ETN | -6.17% | ||
| United States Heating Oil Fund LP | UHN | U | ETF | -6.03% | ||
| DB Agriculture Double Short ETN | AGA | U | ETN | -5.39% | ||
| ELEMENTS Linked to the MLCX Gold Total Return Index | GOE | U | ETF | -5.36% | ||
| United States Gasoline Fund LP | UGA | U | ETF | -4.48% | ||
| United States Oil Fund LP | USO | C+ | ETF | -3.92% | ||
| iPath Goldman Sachs Crude Oil Total Return Index ETN | OIL | C | ETN | -3.69% | ||
| ELEMENTS Rogers Intl Commodity Index - Energy | RJN | U | ETF | -3.64% | ||
| * Due to the lack of trades on 6/11 & 6/12, this figure was calculated from the last trade on 6/10/2008. Source: Bloomberg & TheStreet.com Ratings |
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