NEW YORK (ETF Expert) -- Investors are punishing commodity-rich countries yet again. As popular developed market funds like iShares MSCI United Kingdom (EWU) prosper, iShares MSCI Canada (EWC) and its heavy energy allocation keep the exchange-traded tracker languishing near 52-week lows.
Similarly, iShares MSCI Frontier Markets 100 (FM) continues attracting buyers, whereas copper king Chile via iShares MSCI Chile (ECH) has seen its fortunes evaporate over the course of three years.
Retail investors are not the only group convinced that most commodities will drag on buy-no-hold portfolios. The majority of money managers and institutional advisers are equally negative on everything from gold to industrial metals to wheat. The reasoning may differ -- stronger U.S. dollar, weak emerging market demand, global deflation -- yet the conclusions are eerily similar.
Perhaps ironically, the herd appears to be ignoring the reality that it is buying stocks near all-time highs while simultaneously dismissing the potential of commodities after years of disappointment. In 2013, the S&P 500 garnered more than 29%; the iShares S&P GSCI Commodity Index (GSG) logged -3.5%.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV