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I noticed that over the last 10, 5, 1 years, according to ETF Securities here:
http://www.etfsecurities.com/en/secu...erformance.asp
The DJ Commodity index made from 3 month forward contracts generally performed substantially better than the regular commodity indexes.
e.g. "All Commodities" 3 month forward made 10% p.a. over 10 years, but only 6% for the normal index. For crude oil it's 8% p.a. vs 20% p.a!!
Read about the indexes here:
http://www.djindexes.com/ubs/
ETF Securities offer commodity indexes for both. Does this mean it's better to buy 3 month forward etfs if you want to long a commodity or was this just how it turned out in the last 10 years?
I'd really appreciate some help understanding this.
Ben
http://www.etfsecurities.com/en/secu...erformance.asp
The DJ Commodity index made from 3 month forward contracts generally performed substantially better than the regular commodity indexes.
e.g. "All Commodities" 3 month forward made 10% p.a. over 10 years, but only 6% for the normal index. For crude oil it's 8% p.a. vs 20% p.a!!
Read about the indexes here:
http://www.djindexes.com/ubs/
ETF Securities offer commodity indexes for both. Does this mean it's better to buy 3 month forward etfs if you want to long a commodity or was this just how it turned out in the last 10 years?
I'd really appreciate some help understanding this.
Ben