Recommend Commodity Index Fund

Anything that doesn't fit in another forum
Haystack
Veteran
Posts: 289
Joined: Tue Jan 25, 2022 12:16 pm

Re: Recommend Commodity Index Fund

Post by Haystack »

Tkydon wrote: Mon May 02, 2022 11:08 am But your graphs are still for a single Lump Sum Investment at t=0...
Thank you. Good Catch. I reset it to $100 monthly with a $10,000 lump sum. (Reinvested Dividends)

It just barely matches 20 Year Treasuries of the span. It is expensive and volatile.
a.png
B.png
C.png
concerned
Veteran
Posts: 229
Joined: Sun Oct 15, 2017 2:05 am

Re: Recommend Commodity Index Fund

Post by concerned »

Thanks! Tkydon and Haystack for the discussion and analysis here

So I guess the lesson for me here is stick with my current plan of 60/40 global stock/bond index

While commodities could pay off if one is lucky the drawdowns are severe and not worth losing sleep over....
TBS

Re: Recommend Commodity Index Fund

Post by TBS »

Haystack wrote: Mon May 02, 2022 12:40 am Here is a 20 year snapshot. S&P500 vs 4 Commodities trackers, including Rogers.

...
Tkydon wrote: Mon May 02, 2022 7:30 am Your Graph.

Invesco DB Commodity Index Tracking Fund (90.39%) out-perfomed the Vanguard 500 Index Fund ETF (72.09%) over the last 5 years for a single Lump Sum Investment dated 5-May-2017!

And I will run a Fixed Investment Dollar Cost Average comparison for the two investments over the same period!
Tkydon wrote: Mon May 02, 2022 8:29 am If you had invested US$100 every month since May 2017

VOO Loses by 25%
...
Just to point out all these VOO DBC comparisons are basically invalid because they don't take into account dividends. VOO has a historical dividend yield of about 2%, while DBC has only sporadically paid out dividends.

Once dividends are taken into account, the past performance of DBC against VOO looks even worse.
Haystack
Veteran
Posts: 289
Joined: Tue Jan 25, 2022 12:16 pm

Re: Recommend Commodity Index Fund

Post by Haystack »

TBS wrote: Mon May 02, 2022 12:36 pm
Just to point out all these VOO DBC comparisons are basically invalid because they don't take into account dividends. VOO has a historical dividend yield of about 2%, while DBC has only sporadically paid out dividends.

Once dividends are taken into account, the past performance of DBC against VOO looks even worse.
I set portfolio visualizer to reinvest dividends for all funds. But I am a novice. https://www.portfoliovisualizer.com/
TBS

Re: Recommend Commodity Index Fund

Post by TBS »

Haystack wrote: Mon May 02, 2022 1:07 pm I set portfolio visualizer to reinvest dividends for all funds. But I am a novice. https://www.portfoliovisualizer.com/
Ahh I am sorry. I was just looking at the Google Finance link and Tkydon's numbers from earlier in the first page which didn't.

Will check out portfolio visualizer - it looks powerful.
Post Reply