Investing in commodities could offer an attractive return in a relatively short period of time, but it is riskier as well. One way to reduce the risk is to invest in commodities broad basket funds. Such funds invest in a diversified basket of commodity goods, including grains, minerals, metals, livestock and more. Moreover, these funds invest in commodity goods either directly or through commodity linked derivative instruments. Let’s take a look at the 10 best-performing commodities broad basket funds.
10 Best-Performing Commodities Broad Basket Funds
We have used the past one-year return data of the commodities broad basket funds (from money.usnews.com) to come up with the 10 best-performing commodities broad basket funds.
10. Credit Suisse Trust Commodity Return
Credit Suisse Trust Commodity Return Strategy Portfolio primarily invests in a combination of commodity-linked derivative instruments and fixed income securities. It has gained over 18% in the last six months and almost 15% in the last three years. CCRSX has more than $600 million in total assets and an expense ratio of 1.05. The top two holdings of the fund are: Credit Suisse Trust Cayman Com and United States Treasury Notes 1.09685%.
9. Vanguard Commodity Strategy Fund
Vanguard Commodity Strategy Fund Admiral Shares primarily invests in commodity-linked investments. It has gained almost 16% in the last six months and over 19% in the last three years. VCMDX has more than $2.20 billion in total assets and an expense ratio of 0.20. This fund has invested significantly in United States Treasury Notes.
8. PGIM Quant Solutions Commodity Strategies
PGIM Quant Solutions Commodity Strategies Fund aims to generate returns more than the Bloomberg Commodity Index through investing in exchange-traded futures contracts and exchange-traded forward contracts. It has gained almost 22% in the last six months and almost 17% in the last three years. PQCMX has more than $76 million in total assets and an expense ratio of 0.56. The top two holdings of the fund are: United States Treasury Bills 1.13409% and United States Treasury Bills 0.06755%.
7. DoubleLine Strategic Commodity Fund
DoubleLine Strategic Commodity Fund usually invests in commodity-linked derivatives contracts, securities, or other instruments. It has gained almost 19% in the last six months and over 14% in the last three years. DBCMX has more than $200 million in total assets and an expense ratio of 1.11. The top two holdings of the fund are: United States Treasury Bills 0% and Doubleline Strategic Commodity Ltd.
6. Columbia Commodity Strategy Fund
Columbia Commodity Strategy Fund invests in commodity-linked futures, structured notes and/or swaps. It has gained over 19% in the last six months and almost 17% in the last three years. CCSAX has more than $370 million in total assets and an expense ratio of 1.13. The top three holdings of the fund are: Columbia Short-Term Cash, Gold Future Dec 22 and Natural Gas Jan 23.
5. AQR Risk-Balanced Commodities Strat Fund
AQR Risk-balanced Commodities Strategy Fund invests in various commodity sectors, fixed income securities and money market instruments. It has gained over 17% in the last six months and over 25% in the last three years. ARCIX has more than $500 million in total assets and an expense ratio of 1.02. The top two holdings of the fund are: Limited Purpose Cash Investment and Ubs Relationship Fds.
4. Goldman Sachs Commodity Strategy Fund
Goldman Sachs Commodity Strategy Fund invests in the commodities markets by investing in a wholly-owned subsidiary of the fund organized as a company under the laws of the Cayman Islands, Cayman Commodity-CSF, Ltd. It has gained almost 21% in the last six months and over 8% in the last three years. GSCAX has more than $950 million in total assets and an expense ratio of 0.93. The top two holdings of the fund are: United States Treasury Bills 0.01 and Cayman Commodity Csf, Ltd.
3. Catalyst/Millburn Dynamic Commodity Strategy Fund
Catalyst/Millburn Dynamic Commodity Strategy Fund invests in Commodity futures, options on futures, and common stock futures component. It has gained over 25% in the last six months and over 5% in the last three years. DCXAX has more than $23 million in total assets and an expense ratio of 2.33. The top three holdings of the fund are: Chcsf Fund Ltd, First American Government Obligs U and Utilities Select Sector SPDR® ETF.
2. PIMCO CommoditiesPLUS® Strategy Fund
PIMCO CommoditiesPLUS® Strategy Fund normally invests in commodity-linked derivative instruments. It has gained almost 27% in the last six months and almost 20% in the last three years. PCLAX has more than $3.80 billion in total assets and an expense ratio of 1.19. The top three holdings of the fund are: Pimco Cayman Commodity Fund, Pimco Fds and Federal National Mortgage Association 4%.
1. Rydex Commodities Strategy Fund
Rydex Commodities Fund aims to offer investment results that are in line with the performance of the S&P GSCI® Commodity Index. It has gained over 34% in the last six months and more than 13.25% in the last three years. RYMEX has more than $16 million in total assets and an expense ratio of 1.66. The top three holdings of the fund are: Federal Home Loan Banks, Federal Home Loan Banks 0.13%, Federal Home Loan Banks 0.27%.