GCC: Nothing Enhanced About This Commodity ETF

Macrotips Trading
5.72K Followers

Summary

  • Commodities are often sought as an inflation hedge and portfolio diversifier by investors.
  • The WisdomTree Enhanced Commodity Strategy Fund ETF claims to deliver superior performance by utilizing WisdomTree's macroeconomic forecasts to generate commodity sector weights.
  • Unfortunately, the GCC ETF has grossly underperformed passive ETFs like the Invesco DB Commodity Index Tracking Fund ETF.
  • I would avoid this ETF.
Commodities such as coal tar, gold, cotton, corn, sugar, soybeans, and iron on white background ,Commodity business,3d rendering

Oselote

In an era of high inflation, investors often seek out commodity exposure as commodities are 'hard assets' that have historically protected against prolonged periods of inflation. However, for investors seeking commodity exposure, I would recommend they skip the WisdomTree Enhanced Commodity Strategy Fund ETF (

This article was written by

5.72K Followers
Author of the Macro Trends & Inflection Points Newsletter. I spent 5 years as a co-founder and hedge fund CIO / manager. Before that, I was a hedge fund analyst/portfolio manager at a leading Canadian alternative asset manager. I write articles as part of my own due diligence on the stocks that I find interesting.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of DBC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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