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OJO Zafado » Comments » GCC

  • GCC Commodity ETF Gets Boost From Reduced Fees [View article]
    This fee ratio being lower is a plus. I do not believe it is as low as RJI. My research at ETF.Com indicates RJI has an expense ratio of 0.75%. This may be how RJI is modestly outperforming GCC. These types of ETF/CEF s have big expenses involved with their actually trading the commodities futures so they may underperform the indexes somewhat. That being the case the lower the expense ratio the better. Your chart while including DBC does not include RJI. I believe RJI is constructed to be somewhat more flexible in having a shorter period between the adjusting of weightings. Investors need also to be aware that most of these vehicles for investing in commodities are using US Treasury investments as collateral for their futures trades. With intrest rates at near multi-decade lows and the ten year rate blipping up the last couple days (4/2-3) it may be appropriate to take a position in DXKSX to protect(hedge) your exposure to the bond market turning bearish.
    Apr 02 14:00 pm |Rating: 0 0 |Link to Comment
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