Commodity Funds
Commodities are becoming an increasingly popular investment vehicle recently. Major institutions are developing new mutual funds to satisfy the investment needs. The following commodity funds are the investment universe I can find from various sources for now. This is one of the newest asset classes to be added to sophisticated investment portfolios. The following mutual funds are listed according to their inception dates.
Central Fund of Canada (CEF)
Inception Date: 9/15/1983
Total Net Assets: $821,630,000
This is a closed-end mutual fund. Central Fund of Canada Limited is a closed-end investment management company. The primary objective of the fund is capital appreciation. The fund provides an alternative for investors interested in holding marketable gold and silver-related investments. The fund invests primarily in long-term holdings of gold and silver bullion and does not actively speculate on short-term changes in gold and silver prices. The stated investment policy of the Board of Directors requires Central Fund to maintain a minimum of 90% of its net assets in gold and silver bullion. At least 85% must be in the form of physical bullion holdings. The physical gold and silver bullion holdings are subject to insurance coverage against destruction, disappearance or wrongful abstraction. All expenses of handling, storage and insurance of bullion are paid by Central Fund. Unlike most other forms of bullion investment, there are no storage costs paid by the investor.
Oppenheimer Real Asset Class C (QRACX)
Inception Date: 3/31/1997
Total Net Assets: $1.9 billion
This is a mutual fund. The Fund is the first of its kind - providing retail investors with exposure to commodities. Through investments in securities whose value is linked to the commodity markets, investors receive full dollar-for-dollar exposure to this asset class. Commodities may help protect your portfolio against volatility in the financial markets. That's because tangible goods, such as agriculture or petroleum, are impacted by different factors than stocks or bonds, especially in difficult markets. Typically, when inflation rises, the cost of producing goods or the cost of borrowing funds increases. It may negatively impact stock or bond investments. Commodities, however, can benefit in this environment, as rising prices for raw materials (which are commodities) drive up performance.
The Fund invests primarily in derivative instruments that entail potentially higher volatility and risk of loss than traditional stock or bond investments. It may also invest in foreign securities, which may be more volatile and involve additional expenses and special risks, including currency exchanges, political and economic uncertainties and up to 10% in lower rated 'junk' bonds, which are more at risk of default. The Fund may hold a higher concentration of energy related natural resources, which may significantly influence results. Appropriate for investors seeking total return over the long term, plus the potential to enhance diversification of an existing mixed asset portfolio. Investing in securities may be volatile.
Pimco Commodity Real Return Strategy Fund Class D (PCRDX)
Inception Date: 11/29/2002
Total Net Assets: $1,530.20 M
This is a mutual fund. The investment seeks maximum real return consistent with prudent investment management. The fund normally invests in commodity-linked derivative instruments backed by a portfolio of inflation-indexed securities and other fixed income instruments. It may invest up to 10% of assets in high yield securities. The fund may also invest up to 30% of assets in securities denominated in foreign currencies. It is non-diversified.
streetTRACKS Gold Shares (GLD)
Inception Date: 11/18/2004
Total Net Assets: $7,333,423,000
This is an ETF. The investment objective of the Trust is for the shares to reflect the performance of the price of gold bullion less the expenses of the Trust's operations. The Shares are designed for investors who want a cost-effective and convenient way to invest in gold.
iShares COMEX Gold Trust (IAU)
Inception Date: 1/21/2005
Total Net Assets: $811,305,000
This is an ETF. The iShares COMEX Gold Trust seeks to correspond generally to the day-to-day movement of the price of gold bullion. The objective of the Trust is for the value to reflect at any given time the price of gold owned by the Trust at that time less the expenses and liabilities of the Trust.
Rydex Commodities Fund Class H (RYMBX)
Inception Date: 05/25/2005
Total Net Assets: $29.4 M
This is a no-load mutual fund. The investment seeks to provide investment results correlating to the performance of the GSCI index The fund seeks 100% (but at all times at least 80%) exposure to the performance of the commodities markets. The fund is non-diversified.
Powershares DB Commodity Index Tracking Fund (DBC)
Inception Date: 2/3/2006
Total Net Assets: $651.53 M
This is an ETF. DBC is an innovative product that offers investors unprecedented transparency and access to a commodity index. DBC's returns are expected to track the performance of the Deutsche Bank Liquid Commodity Index Excess Return (DBLCI). The DBLCI is a rules-based index based on six liquid futures contracts on Light Sweet Crude Oil, Heating Oil, Gold, Aluminum, Corn and Wheat.
Fidelity Strategic Real Return Fund (FSRRX)
Inception Date: 03/31/2006
Total Net Assets: $2,529.74 M
This is a no-load mutual fund. Allocates the fund's assets among four general investment categories: inflation-protected debt securities, floating-rate loans, commodity-linked notes and related investments, and real estate investment trusts (REITS) and other real estate related investments. The fund uses a neutral mix of approximately 30% inflation-protected debt securities; 25% floating-rate loans, 25% commodity-linked notes and related investments, and 20% REITs and other real estate related investments. The fund invests in domestic and foreign issuers. The fund manager analyzes a security's structural features and current pricing, its issuer's potential for success and the credit, currency, and economic risks of the security and its issuer to select investments.
United States Oil Fund (USO)
Inception Date: 4/10/2006
Total Net Assets: $0.42 Billion
This is an ETF. The investment seeks to reflect the performance, less expenses, of the spot price of West Texas Intermediate (WTI) light, sweet crude oil. The fund will invest in futures contracts for WTI light, sweet crude oil, other types of crude oil, heating oil, gasoline, natural gas and other petroleum based-fuels that are traded on exchanges. It may also invest in other oil interests such as cash-settled options on oil futures contracts, forward contracts for oil, and OTC transactions that are based on the price of oil. The fund is non-diversified.
iShares Silver Trust (SLV)
Inception Date: 4/21/2006
Total Net Assets: $1,105,326,396
The objective of the trust is for the value of the iShares to reflect at any given time the price of silver owned by the trust at that time less the trust's expenses and liabilities. The trust receives silver deposited with it in exchange for the creation of Baskets of iShares sells silver as necessary to cover the trust expenses and other liabilities and delivers silver in exchange for Baskets of iShares surrendered to it for redemption. The iShares are intended to constitute a simple and cost-effective means of making an investment similar to an investment in silver.
iShares GSCI Commodity-Indexed Trust (GSG)
Inception Date: 7/21/2006
Total Net Assets: $46,398,615
This is an ETF. The investment objective of the Fund is to seek investment results, through the Trusts investment in the commodity pool iShares, Goldman Sachs Commodity-Indexed Investing Pool LLC or the Investing Pool, that correspond generally, but are not necessarily identical, to the performance of the Index, before the payment of expenses and liabilities of the Trust and the Investing Pool. The Investing Pool will hold long positions in futures contracts on the Goldman Sachs Commodity Index Excess Return Index, called CERFs, which are futures contracts listed on the Chicago Mercantile Exchange that have a term of approximately five years after listing and whose settlement at expiration is based on the value of the Goldman Sachs Commodity Index Excess Return Index.
Central Fund of Canada (CEF)
Inception Date: 9/15/1983
Total Net Assets: $821,630,000
This is a closed-end mutual fund. Central Fund of Canada Limited is a closed-end investment management company. The primary objective of the fund is capital appreciation. The fund provides an alternative for investors interested in holding marketable gold and silver-related investments. The fund invests primarily in long-term holdings of gold and silver bullion and does not actively speculate on short-term changes in gold and silver prices. The stated investment policy of the Board of Directors requires Central Fund to maintain a minimum of 90% of its net assets in gold and silver bullion. At least 85% must be in the form of physical bullion holdings. The physical gold and silver bullion holdings are subject to insurance coverage against destruction, disappearance or wrongful abstraction. All expenses of handling, storage and insurance of bullion are paid by Central Fund. Unlike most other forms of bullion investment, there are no storage costs paid by the investor.
Oppenheimer Real Asset Class C (QRACX)
Inception Date: 3/31/1997
Total Net Assets: $1.9 billion
This is a mutual fund. The Fund is the first of its kind - providing retail investors with exposure to commodities. Through investments in securities whose value is linked to the commodity markets, investors receive full dollar-for-dollar exposure to this asset class. Commodities may help protect your portfolio against volatility in the financial markets. That's because tangible goods, such as agriculture or petroleum, are impacted by different factors than stocks or bonds, especially in difficult markets. Typically, when inflation rises, the cost of producing goods or the cost of borrowing funds increases. It may negatively impact stock or bond investments. Commodities, however, can benefit in this environment, as rising prices for raw materials (which are commodities) drive up performance.
The Fund invests primarily in derivative instruments that entail potentially higher volatility and risk of loss than traditional stock or bond investments. It may also invest in foreign securities, which may be more volatile and involve additional expenses and special risks, including currency exchanges, political and economic uncertainties and up to 10% in lower rated 'junk' bonds, which are more at risk of default. The Fund may hold a higher concentration of energy related natural resources, which may significantly influence results. Appropriate for investors seeking total return over the long term, plus the potential to enhance diversification of an existing mixed asset portfolio. Investing in securities may be volatile.
Pimco Commodity Real Return Strategy Fund Class D (PCRDX)
Inception Date: 11/29/2002
Total Net Assets: $1,530.20 M
This is a mutual fund. The investment seeks maximum real return consistent with prudent investment management. The fund normally invests in commodity-linked derivative instruments backed by a portfolio of inflation-indexed securities and other fixed income instruments. It may invest up to 10% of assets in high yield securities. The fund may also invest up to 30% of assets in securities denominated in foreign currencies. It is non-diversified.
streetTRACKS Gold Shares (GLD)
Inception Date: 11/18/2004
Total Net Assets: $7,333,423,000
This is an ETF. The investment objective of the Trust is for the shares to reflect the performance of the price of gold bullion less the expenses of the Trust's operations. The Shares are designed for investors who want a cost-effective and convenient way to invest in gold.
iShares COMEX Gold Trust (IAU)
Inception Date: 1/21/2005
Total Net Assets: $811,305,000
This is an ETF. The iShares COMEX Gold Trust seeks to correspond generally to the day-to-day movement of the price of gold bullion. The objective of the Trust is for the value to reflect at any given time the price of gold owned by the Trust at that time less the expenses and liabilities of the Trust.
Rydex Commodities Fund Class H (RYMBX)
Inception Date: 05/25/2005
Total Net Assets: $29.4 M
This is a no-load mutual fund. The investment seeks to provide investment results correlating to the performance of the GSCI index The fund seeks 100% (but at all times at least 80%) exposure to the performance of the commodities markets. The fund is non-diversified.
Powershares DB Commodity Index Tracking Fund (DBC)
Inception Date: 2/3/2006
Total Net Assets: $651.53 M
This is an ETF. DBC is an innovative product that offers investors unprecedented transparency and access to a commodity index. DBC's returns are expected to track the performance of the Deutsche Bank Liquid Commodity Index Excess Return (DBLCI). The DBLCI is a rules-based index based on six liquid futures contracts on Light Sweet Crude Oil, Heating Oil, Gold, Aluminum, Corn and Wheat.
Fidelity Strategic Real Return Fund (FSRRX)
Inception Date: 03/31/2006
Total Net Assets: $2,529.74 M
This is a no-load mutual fund. Allocates the fund's assets among four general investment categories: inflation-protected debt securities, floating-rate loans, commodity-linked notes and related investments, and real estate investment trusts (REITS) and other real estate related investments. The fund uses a neutral mix of approximately 30% inflation-protected debt securities; 25% floating-rate loans, 25% commodity-linked notes and related investments, and 20% REITs and other real estate related investments. The fund invests in domestic and foreign issuers. The fund manager analyzes a security's structural features and current pricing, its issuer's potential for success and the credit, currency, and economic risks of the security and its issuer to select investments.
United States Oil Fund (USO)
Inception Date: 4/10/2006
Total Net Assets: $0.42 Billion
This is an ETF. The investment seeks to reflect the performance, less expenses, of the spot price of West Texas Intermediate (WTI) light, sweet crude oil. The fund will invest in futures contracts for WTI light, sweet crude oil, other types of crude oil, heating oil, gasoline, natural gas and other petroleum based-fuels that are traded on exchanges. It may also invest in other oil interests such as cash-settled options on oil futures contracts, forward contracts for oil, and OTC transactions that are based on the price of oil. The fund is non-diversified.
iShares Silver Trust (SLV)
Inception Date: 4/21/2006
Total Net Assets: $1,105,326,396
The objective of the trust is for the value of the iShares to reflect at any given time the price of silver owned by the trust at that time less the trust's expenses and liabilities. The trust receives silver deposited with it in exchange for the creation of Baskets of iShares sells silver as necessary to cover the trust expenses and other liabilities and delivers silver in exchange for Baskets of iShares surrendered to it for redemption. The iShares are intended to constitute a simple and cost-effective means of making an investment similar to an investment in silver.
iShares GSCI Commodity-Indexed Trust (GSG)
Inception Date: 7/21/2006
Total Net Assets: $46,398,615
This is an ETF. The investment objective of the Fund is to seek investment results, through the Trusts investment in the commodity pool iShares, Goldman Sachs Commodity-Indexed Investing Pool LLC or the Investing Pool, that correspond generally, but are not necessarily identical, to the performance of the Index, before the payment of expenses and liabilities of the Trust and the Investing Pool. The Investing Pool will hold long positions in futures contracts on the Goldman Sachs Commodity Index Excess Return Index, called CERFs, which are futures contracts listed on the Chicago Mercantile Exchange that have a term of approximately five years after listing and whose settlement at expiration is based on the value of the Goldman Sachs Commodity Index Excess Return Index.
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