They are really trend following funds, not commodity funds per se. A commodity fund will basically lose money if the underlying commodity price keeps going down. That’s not true at all for a trend following fund. It might lose money. It might make money, dependingManaged futures funds are usually commodity funds. You are paying an active manager to buy/sell commodities contracts. There isn't a lot of interest in commodities on this forum (for good reason, imo). I would search the forum on commodities discussions to review the reasons. The main reason is that commodities don't really produce any income, they just sit there.
The passive "index" commodity funds generally do momentum types of things like "buy/short the commodity that is above/below it's 45 day moving average". It's trashy backtesting.
I would personally recommend staying away.
Also, note that these funds usually make your taxes a bit messy. You may get a K1 from holding the ETF.
How did you pick these two funds? Were you using hindsight bias?
Vanguard has a commodity fund:
https://investor.vanguard.com/investmen ... file/vcmdx
Frankly, I think a lot of people hold commodities for a few years and then give up.
Statistics: Posted by ScubaHogg — Sun Aug 18, 2024 4:48 pm — Replies 3 — Views 342