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PowerShares DB Commodity Index Tracking ETF (DBC)

- NYSEARCA
  • Oct. 23, 2013, 11:13 AM
    • Launching today is the actively-managed First Trust Global Tactical Commodity Strategy Fund (FTGC). Twenty-five percent of the fund's assets will be invested in futures contacts and ETPs, with the rest invested in cash, money markets, and investment-grade fixed income securities.
    • "By attempting to pick the most attractive maturity futures contract for each commodity, FTGC may provide higher returns over a market cycle," says the fund's senior portfolio manager Rob Guttschow, referring to the well-known negative roll effects of buying into markets in contango.
    • The fund's expense ratio is 0.95%.
    • Other broad commodity ETFs: DJP, GSP, LSC, RJI, GSC, GCC, GSG, DBC, DPU, DJCI, UCI, USCI, DYY, UCD, DEE, CMD, DDP, RGRC, CTF, CFD CSCR, CSCB.
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  • Oct. 16, 2013, 3:47 PM
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  • Sep. 26, 2013, 12:57 PM
    • "Striking," to McKinsey, is how well commodity prices have held up despite the sluggish economy. The group notes despite recent falls, prices remain around the levels of early to mid-2008 - just prior to the global financial crisis hitting.
    • Pimco - on the other hand - isn't calling for a price crash, but says the double-digit annual growth from the late 1990s up to the financial crisis isn't returning. Returns though, may still be positive going forward.
    • Broad commodity ETFs: DJP, GSP, LSC, RJI, GSC, GCC, GSG, DBC, DPU, DJCI, UCI, USCI, DYY, UCD, DEE, CMD, DDP, RGRC, CTF, CFD CSCR, CSCB.
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  • Sep. 12, 2013, 7:48 AM
    • The gathering pace of infrastructure projects and consumers' need to restock will fuel a rebound in China's commodity usage through the end of the year, says Goldman. "People are getting more positive, but they’re not super bullish, not yet,” said Goldman's Julian Zhu. “You’re going to see further upside. If you look at the early indicators in September; it seems like the overall economic activity is picking up."
    • Steel prices in particular are expected to be stronger, says Zhu. Re-bar futures in Shanghai closed at $3,713 per metric ton last night, continuing a 3-month run of higher prices, the longest streak since 2010/11.
    • Broad commodity ETFs: DJP, GSP, LSC, RJI, GSC, GCC, GSG, DBC, DPU, DJCI, UCI, USCI, DYY, UCD, DEE, CMD, DDP, RGRC, CTF, CFD CSCR, CSCB.
    • Broad base metal ETFs: JJM, RJZ, BDG, DBB, UBM, BDD, BOM, BOS, USMI, RGRI.
    • Steel: SLX.
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  • Aug. 21, 2013, 11:17 AM
    • Up and trading is the iShares DJ-UBS Roll Select Commodity Index Trust (CMDT), a commodity ETF aimed at negating the negative roll associated with owning futures contracts when markets are in contango.
    • A market in contango has later-dated contracts more expensive than near-term ones, making the rolling over of expiring contracts a costly process. Markets in "backwardation" have later-dated contracts less expensive than near-term ones, and the roll can add to a fund's performance. CMDT selects those contracts exhibiting the least contango or most backwardation.
    • One competing fund, USCI, has outperformed the DBC by 150 bps this year.
    • Broad commodity ETFs: DJP, GSP, LSC, RJI, GSC, GCC, GSG, DBC, DPU, DJCI, UCI, USCI, DYY, UCD, DEE, CMD, DDP, RGRC, CTF, CFD CSCR, CSCB.
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  • Aug. 15, 2013, 4:38 PM
    • Rising rates, the decline in stocks, and escalating violence in Egypt provided no bid for the greenback which fell across the board today.
    • The dollar (UUP -0.7%) lost more than 1% against the Swiss franc (FXF +1%) and nearly 1% vs. the yen (FXY +0.8%) and cable (FXB +0.9%). The euro (FXE +0.7%) gained nearly three quarters of one percent.
    • Typically the first to sell off when markets get a bit panicky, even the loonie (FXC +0.2%) and the aussie (FXA) picked up ground against the U.S. unit.
    • A reason? Maybe the commodity sector (DBC +1%) - it was notably strong with metals, energy, and the grains all higher.
    • Related dollar ETFs: UUPT, UDN, UDNT.
    • Broad commodity ETFs: DJP, GSP, LSC, RJI, GSC, GCC, GSG, DBC, DPU, DJCI, UCI, USCI, DYY, UCD, DEE, CMD, DDP, RGRC, CTF, CFD CSCR, CSCB.
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  • Jul. 25, 2013, 7:55 PM
    Goldman Sachs makes the case for holding commodities as a strategic move. On Brent crude, the market should be well supplied in H2 as significant non-OPEC supply comes online and weak Chinese trade data signals relatively weak demand. Gold prices should decline to $1,050/oz. by year-end 2014 given a less accommodative Fed. Potash producers will maintain discipline and good margins despite falling crop prices.
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  • Jul. 1, 2013, 9:30 AM
    JPMorgan recommends getting overweight commodities (DBC) for the first time in 2 years, but warns the call isn't an "all-clear" signal, but instead a view on term structure in energy, which dominates most indices. Momentum is still negative in metals but prices - particularly for gold and copper - are at levels which should spur production cuts and fresh demand.
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  • Jun. 20, 2013, 3:17 AM
    While the dollar rises following the FOMC's various statements and comments yesterday, commodities (DBC) sell off, with gold -3.3% (GLD) to 1,328.85 per ounce, well below the key support level of $1,349. Silver (SLV) -4.3%, Oil -1.8% (USO), copper -1.6% - also dragged down by the poor Chinese PMI print - palladium -1.6% and natural gas (GAZ) -0.8%.
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  • Jun. 18, 2013, 8:54 AM
    "The biggest contrarian play in the market today is assets linked to China (FXI, CAF)," says Michael Hartnett, summarizing BAML's latest Fund Manager Survey, which shows money flowing out of commodities (DBC) and emerging markets (EEM, DEM, VWO). Where's the money going? The eurozone and the U.S. Where it's not going is fixed-income (AGG, BND) - 50% of managers say they're now underweight bonds as opposed to 38% last month.
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  • Jun. 7, 2013, 4:28 PM
    The week's ETF movers - Gainers: OIL +5.1%. USO +4.7%. BNO +4.6%. FXY +3.1%. DBC +1.7%.
    ETF Losers: GAZ -4.7%. UNG -4.1%. PSLV -2.9%. SLV -2.7%. SIVR -2.6%.
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  • May 14, 2013, 10:42 AM
    "Contrarians should start buying emerging markets (EEM, DEM, VWO) and think about global energy (XLE) and material companies (XLB) and commodities (DBC)," says BAML's John Bilton, noting a "marked uptick" in concern about China (FXI, CAF) in his firm's latest fund manger survey. One-in-four now consider a Chinese hard landing as the biggest risk to their investment. Where respondents are not fearful? Japan (EWJ, DXJ). (previous)
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  • May 14, 2013, 7:21 AM
    An early look at the BAML May fund manager survey shows hedge fund equity exposure (VTI) at the highest in 7 years, +45%. Commodity exposure (DBC) is a negative 29%. Cash is at 4.3%. Sectors: It's a record-low exposure to energy (XLE) at -17%. Japan (EWJ, DXJ) at +31% is the highest in 7 years.
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  • May 8, 2013, 2:52 PM
    The recent selloff in commodities (DBC) is not a correction, says Stan Druckenmiller, now on stage at Ira Sohn, but instead the end of the supercycle. Avoid commodity markets - Brazil (EWZ, BRF, BRL), South Africa (EZA, SZR), Canada (EWC, FXC). "Frankly, I'd short the aussie (FXA)." His largest equity holding? "I can't imagine a better position than Google (GOOG)" - selling for 16x earnings and no exposure to China.
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  • May 6, 2013, 8:31 AM
    The commodity boom (DBC) is over, writes Morgan Stanley global macro chief Ruchir Sharma, as massive overinvestment - mostly to feed China's voracious demand - comes online just at the time said demand becomes considerably less voracious. Not only are China and emerging markets in general slowing, but the countries are striving to become more efficient (USO) as well. "If historical pattern holds, we are now entering a long period of falling commodity prices, which could last two decades."
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  • May 1, 2013, 10:41 AM
    Commodities are lit up bright red as weak economic data (here and in China) is a good excuse to end the bounce of the last few sessions. Gold (GLD -1.8%), Silver (SLV -3.6%), WTI Crude (USO -2.6%). Copper (JJC -3.3%) moves to its lowest level in about 18 months at $3.08/lb. The metal hasn't had a 2-handle since the start of 2011. Broad commodity gauge (DBC -1.8%).
    | 5 Comments
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DBC Description
The PowerShares DB Commodity Index Tracking Fund (Fund) is based on the Deutsche Bank Liquid Commodity Index — Optimum Yield Diversified Excess Return™ (Index) and managed by DB Commodity Services LLC. The Index is a rules-based index composed of futures contracts on 14 of the most heavily-traded and important physical commodities in the world. You cannot invest directly in an index. Ordinary brokerage commissions apply.
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