Trade Commodities Like Legend Jim Rogers

If you listen to Jimmy Rogers, you might think that the U.S. as we know it will cease to exist. While I do not share this opinion, I think there is value in understanding what he means and exploring some of the investment themes he believes are important.

Rogers has lent his name to a new line of exchange-traded notes from a company called Elements that slice and dice various commodities indices into easily accessible investment products.

There are four funds: Elements Linked to Rogers International Commodity Index Total Return (RJI Quote), Elements Linked to Rogers International Commodity Index Agriculture Total Return (RJA Quote), Elements Linked to Rogers International Commodity Index Energy Total Return (RJN Quote) and Elements Linked to Rogers International Commodity Index Metals Total Return (RJZ Quote). All were launched earlier this month.

The total return index is the broadest exchange-traded product that invests in commodities I have seen to date. It allocates 44% of assets to energy, spread across six different products; 34.90% to 20 agricultural products including barley and greasy wool; and lastly 21.10% to metals. Interestingly gold has a smaller weight than aluminum or copper. ...