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Commodities ETFs want to get back into your portfolio

By Benzinga
Asset Management

 

During the halcyon days of quantitative easing, dollar weakness and inflation expectations, commodities exchange traded products were hits. Just five years ago, there was $125 billion in assets under management across commodities exchange-traded funds and exchange traded notes (ETNs) and there was a time, albeit brief, when the SPDR Gold Trust (ETF) (NYSE: GLD) was the largest ETF in the world.

Over the past year, commodities ETFs have been beset by dismal performances and massive outflows, prompting some investors to question the value of commodities as core portfolio holdings, even in modest allocations.
What Commodities Are Doing
While the PowerShares DB US Dollar Index Bullish (NYSE: UUP), the U.S. dollar index tracking ETF, has climbed 9.3 percent over the past year, commodities ETFs have been decimated. For example, GLD and the iShares Silver Trust (ETF) (NYSE: SLV) have posted an average loss of 6.5 percent, while the United States Oil ...

Full story available on Benzinga.com
Photo: Sajid Pervaiz Fazal

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