Beware of Divergence Among Energy Commodity ETFs
02/14/2011 0 comments
Last week, precious metals ETFs (GLD, SLV, DBP) continued their recovery: Silver (SLV) again was the strongest, rising 2.85% for the week. Gold (GLD) had a somewhat anemic gain.
Agriculture commodity (DBA) was again in a steady uptrend, gaining 1.49%. As we pointed out previously, world food prices have been rising and investing in agriculture commodity fits very well to this fundamental.
Crude oil (USO) and natural gas (UNG) were again losers, losing 3.45% and 9.47% respectively. For more information, refer to here.
The following table shows the trend scores for various commodity ETFs.
| Assets Class | Symbols | 02/11 Trend Score | 02/04 Trend Score | Direction |
|---|---|---|---|---|
| Silver | SLV | 35.79% | 32.25% | ^ |
| Agriculture | DBA | 19.98% | 18.89% | ^ |
| Commodity | DBC | 13.58% | 13.51% | ^ |
| Base Metals | DBB | 11.63% | 13.6% | v |
| Precious Metals | DBP | 11.42% | 10.72% | ^ |
| Energy | DBE | 10.06% | 10.25% | v |
| Gold | GLD | 6.85% | 6.73% | ^ |
| US Oil | USO | -1.2% | 1.37% | v |
| Natural Gas | UNG | -19.93% | -12.75% | v |
The trend score is defined as the average of 1,4,13,26 and 52 week total returns (including dividend reinvested).
The energy ETF (DBE) tracks an index that is a rules-based index composed of futures contracts on some of the most heavily traded energy commodities in the world?: Light Sweet Crude Oil (WTI), Heating Oil, Brent Crude Oil, RBOB gasoline and Natural Gas. It is interesting to note that there have been substantial performance divergence between USO, UNG and DBE. For example, for the last week, DBE only lost 0.53%, compared with the big loss cited above for USO and UNG.
It is thus important for investors to beware of the divergence among energy commodity ETFs. We will have a follow up article for more detailed analysis.
Symbols:SLV,DBP,GLD,DBB,DBA,DBC,DBE,USO,UNG,SPY,QQQQ,IWM,MDY,EFA,VEU,EEM,VWO,IYR,ICF,VNQ,GSG,LQD,CSJ,CIU,HYG,JNK,PHB,TLT,IEF,SHY,SHV,BND,AGG,MUB,MBB
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