Posted on Monday, May 7th, 2012 | In Current Market News, Exchange Traded Funds
Commodity ETFs finished flat today despite continued tremors in Europe. Typically commodity prices rise and fall with economic activity; since Europe is on the brink of destruction once more as projected by the outcomes of the French and Greek elections, commodity prices will likely start to fall so long as European economic activity continues to dwindle.
Broad-Based Commodities ETF Update:
PowerShares DB Commodity Index Tracking Fund ETF (NYSEARCA:DBC): -.22%, This ETF is a broad-based commodities ETF which directly tracks the DBIQ Optimum Yield Diversified Commodity Index Excess Return. The DBIQ Optimum Yield Diversified Commodity Index Excess Return represents the 14 most heavily traded commodities worldwide, including light crude oil, brent crude oil, gold, aluminum, and corn.
The iPath Dow Jones-UBS Commodity Index Total Return ETN (NYSEARCA:DJP): +.15%, This is a broad-based commodities ETN which directly tracks the performance of the Dow Jones –UBX Commodity Index Total Return. The Dow Jones-UBX Commodity Index Total Return tracks 19 basic commodities including crude oil, gold, corn, copper, and natural gas.
Agriculture Commodities ETF Update:
PowerShares DB Agriculture Fund ETF (NYSEARCA:DBA): +.30%, This ETF is an agricultural commodity based ETF which tracks the performance of the DBIQ Diversified Agriculture Index Excess Return. The DBIQ Diversified Agriculture Index Excess Return reflects the performance of the world’s most sought after agriculture commodities including corn, soybeans, sugar, and cocoa.
Market Vectors Agribusiness ETF (NYSEARCA:MOO): -.06%, This ETF is an agricultural ETF which directly tracks the DAXglobal Agribusiness Index (DXAG). The DXAG Index reflects the performance of agriculture companies which are traded on global exchanges; companies include Monsanto Company, Wilmar International LTD, and Deer & Co.
Copper ETF Update:
Copper Spot Price: $3.76/LB, +.83%
Dow Jones-UBS Copper Subindex Total Return ETN (NYSEARCA:JJC): +1.44%, This is a Copper ETN which directly tracks the performance of Copper Futures Contracts within the Dow Jones-UBS Commodity Index Total Return. The Dow Jones-UBS Commodity Index Total Return holds futures contracts for copper specifically, thus this ETN tracks a Subindex related to copper of the Dow Jones –UBS Commodity Index Total Return. The Dow Jones-UBS Copper Subindex Total Return ETN (NYSEARCA:JJC) tracks the performance of Copper High Grade Futures Contracts traded on the COMEX.
Bottom Line: Commodities finished flat today despite continued woes in Europe. If Europe tremors continue, commodity ETFs will likely fall if economic activity across the pond begins to fade and have adverse affects on US markets.
Disclaimer: Wall Street Sector Selector trades a wide variety of ETFs and positions can change at any time.
About John Nyaradi (http://www.wallstreetsectorselector.com)
John Nyaradi is Publisher of Wall Street Sector Selector: Your Home For ETF Investing! John writes a weekly guest column, John Nyaradi’s ETF Edge for MarketWatch.com and his investment articles have appeared in many online publications including Trading Markets, Money Show, Yahoo Finance, Investors Insight, Fidelity, ETF Daily News, iStock Analyst , among many others. His book, Super Sectors: How to Outsmart the Market Using Sector Rotation and ETFs, is published by John Wiley and Sons and included among the Years Top Investment Books in the 2011 Stock Trader’s Almanac.