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
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $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
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV