Over $250 Billion in Bonds Are at Risk
Aaron Levitt
|
For investors, the wipe-out of CoCo bonds brings forth a variety of questions...
It’s been a while since investors have had a reason to celebrate any type of commodity, but that could all be changing. One of the primary reasons would be a relatively weak U.S. dollar, which is expected to support the commodity asset class as a whole. At the same time, it is important to note that commodities have failed to live up to the bullish expectations as fears of trade wars, geopolitical tensions and uncertainties associated with such events have overpowered the fundamental strength the asset class demonstrated while making a recovery post the financial crisis.
Nevertheless, hopping aboard the commodity bandwagon isn’t as easy as simply buying shares of a stock. As such, mutual funds are the best way to take advantage of the commodity resurgence. However, with thousands of funds from which to choose, finding the right fit can be a bit like trying to find a needle in a haystack.
Still, a basket of different commodities is the ideal way to go for investors betting on a commodity recovery. Even if a few commodities are lagging, as long as more are outperforming, then it won’t matter. However, it is important to note that the majority of the broad-basket commodity-based mutual funds have underperformed year-to-date.
BCSAX carries a 1.21% expense ratio, making it relatively expensive, however, its wide diversity in commodities could make it a contender right now. Right now, the fund is invested roughly 23% in U.S. Treasuries, followed by 2.35% in Royal Dutch Shell (RDS-A), 2.15% in BHP Billiton (BHP) and 1.67% in Chevron (CVX).
Despite going up by more than 10% last year, the fund has remained almost flat year-to-date.
Although the fund remained flat year-to-date, it returned more than 11% for the rolling 1-year.
Year to date, the fund is down about 1.59%, although the fund was up more than 15% for the rolling 1-year. Since the fund avoids equity investments, its holding is made up of commodity derivatives in the form of bonds, futures and other asset types.
Receive email updates about best performers, news, CE accredited webcasts and more.
Aaron Levitt
|
For investors, the wipe-out of CoCo bonds brings forth a variety of questions...
Aaron Levitt
|
One of the biggest and most important positions of the bill deals with...
News
Markets have continued to rally these past two weeks, after the Federal Reserve...
Mutual Fund Education
Justin Kuepper
|
Let's take a closer look at how ESG investments have outperformed during the...
Mutual Fund Education
Daniel Cross
|
While CITs and mutual funds share many similarities, there are some key differences...
Mutual Fund Education
Sam Bourgi
|
The phrase ‘bear market’ has been thrown around a lot lately, but it...
It’s been a while since investors have had a reason to celebrate any type of commodity, but that could all be changing. One of the primary reasons would be a relatively weak U.S. dollar, which is expected to support the commodity asset class as a whole. At the same time, it is important to note that commodities have failed to live up to the bullish expectations as fears of trade wars, geopolitical tensions and uncertainties associated with such events have overpowered the fundamental strength the asset class demonstrated while making a recovery post the financial crisis.
Nevertheless, hopping aboard the commodity bandwagon isn’t as easy as simply buying shares of a stock. As such, mutual funds are the best way to take advantage of the commodity resurgence. However, with thousands of funds from which to choose, finding the right fit can be a bit like trying to find a needle in a haystack.
Still, a basket of different commodities is the ideal way to go for investors betting on a commodity recovery. Even if a few commodities are lagging, as long as more are outperforming, then it won’t matter. However, it is important to note that the majority of the broad-basket commodity-based mutual funds have underperformed year-to-date.
BCSAX carries a 1.21% expense ratio, making it relatively expensive, however, its wide diversity in commodities could make it a contender right now. Right now, the fund is invested roughly 23% in U.S. Treasuries, followed by 2.35% in Royal Dutch Shell (RDS-A), 2.15% in BHP Billiton (BHP) and 1.67% in Chevron (CVX).
Despite going up by more than 10% last year, the fund has remained almost flat year-to-date.
Although the fund remained flat year-to-date, it returned more than 11% for the rolling 1-year.
Year to date, the fund is down about 1.59%, although the fund was up more than 15% for the rolling 1-year. Since the fund avoids equity investments, its holding is made up of commodity derivatives in the form of bonds, futures and other asset types.
Receive email updates about best performers, news, CE accredited webcasts and more.
Aaron Levitt
|
For investors, the wipe-out of CoCo bonds brings forth a variety of questions...
Aaron Levitt
|
One of the biggest and most important positions of the bill deals with...
News
Markets have continued to rally these past two weeks, after the Federal Reserve...
Mutual Fund Education
Justin Kuepper
|
Let's take a closer look at how ESG investments have outperformed during the...
Mutual Fund Education
Daniel Cross
|
While CITs and mutual funds share many similarities, there are some key differences...
Mutual Fund Education
Sam Bourgi
|
The phrase ‘bear market’ has been thrown around a lot lately, but it...