Tracking errors make commodity ETFs unsuitable for most investors, says fund manager
Several commodity indexes tracked by exchange-traded products (ETPs) have significantly underperformed the spot prices of their underlying commodities over the past year, sometimes delivering double-digit underperformance, according to Moonraker Fund Management.
“Some exchange-traded funds (ETFs) can suffer tracking errors because of the index methodologies, which might not be efficient in all market conditions. People think they are investing in the actual commodity when in fact they are
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact [email protected] to find out more.
You are currently unable to copy this content. Please contact [email protected] to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email [email protected]
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email [email protected]
More on Structured products
Derivatives
SEC’s Gensler takes aim at Bloomberg’s BSBY index
Credit sensitive SOFR alternative has “many of the same flaws as Libor”, regulator says
Receive this by email
Most read on Risk.net
- The Libor replacement stakes: runners and riders
- SEC’s Gensler takes aim at Bloomberg’s BSBY index
- People moves: five leave JP Morgan, MS names co-presidents, and more
- Asia moves: Deutsche appoints Asia-Pacific treasurer, Citi boosts Australian sales team, and more
- Early deaths could kill defined benefit pension shortfalls