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Lewis Braham: If Commodities’ Day Has Come, This Fund Should Score: (JCRAX)

TedTed
in Fund Discussions
FYI: Lately, commodities have performed so poorly investors would be forgiven for thinking people no longer need anything to eat, drink, or fuel their cars—just iPhones and subscriptions to Amazon Prime. In the past five years, the average commodity mutual fund has lost 8% a year, while the S&P 500 has gained 10%.

Worse, even when commodity prices have gone up, most commodity funds have failed to fully capture those gains. A phenomenon known as “contango” has been a drag on fund performance. Investors rarely buy commodities directly, instead favoring futures contracts, which are derivatives with expiration dates. Contango occurs when a commodity future’s price is above the current or spot price, so that every time a contract expires, investors must pay more for a new one.
Regards,
Ted
https://www.barrons.com/articles/if-commodities-day-has-come-this-fund-should-be-a-winner-1543496400?refsec=funds

M* Snapshot JCRAX:
https://www.morningstar.com/funds/XNAS/JCRAX/quote.html

Lipper Snapshot JCRAX:
https://www.marketwatch.com/investing/fund/jcrax

JCRAX Is Unranked In The (CBB) Fund Category By U.S. News & World Report:
https://www.marketwatch.com/investing/fund/jcrax

Comments

  • BobCBobC
    Commodities? Folks have waited for that day for at least twenty years. Even within commodities, the separate classes have been cyclical. While I own a bit of a gold ETF for pure hedging (and it hasn't worked all that well, either), paying a ridiculous fee to own futures contracts seems a loser's game.
  • TedTed
    @BobC: Always enjoy seeing you comments ! How is retirement treating you ?
    Regards,
    Ted
  • BenWPBenWP
    I think the same is true for divorce and remarriage; with each expiring "contract" the price goes up. I still contango with my original spouse, so I have no direct experience with divorce nor any standing on the issue.

    Our physical gold has lost half its value since we were given it six years ago. I sold our commodities ETF at a profit last year, but have no inkling to get back in. No doubt prices are low, but so are EM stocks and other "sure bets."
  • AndyJ
    @BenWP: Good one. Tango's a nice complement to that kind of contango, too (or maybe that's what you meant!).
  • BobCBobC
    @Ted: Doing well, Ted. As my December commentary indicates, I am enjoying being disconnected from all the financial world's constant noise. Just completed my annual review of our investments, made one sale, and closer looks for two or three other holdings. No real change in allocation. Doing some volunteer work, lots more music, lots of travel, and major gardening for 6 months of the year. With winter, I have time to reflect, write, and offer mostly unwanted opinions. That's the advantage of being retired...making comments I might not offer if I was still part of an RIA firm. As Dumbledore says, "Being me has its advantages."
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