Comments on: Here’s why commodity trackers lose you money http://blogs.reuters.com/breakingviews/2009/10/21/heres-why-commodity-trackers-lose-you-money/ Mon, 26 Sep 2016 03:26:00 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: Paul Rhodes http://blogs.reuters.com/breakingviews/2009/10/21/heres-why-commodity-trackers-lose-you-money/comment-page-1/#comment-893 Tue, 27 Oct 2009 03:22:57 +0000 http://blogs.reuters.com/columns/?p=953#comment-893 Most common equity indices are price return, not total return. Brazil’s Bovespa index is a noticable exception.

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By: f belz http://blogs.reuters.com/breakingviews/2009/10/21/heres-why-commodity-trackers-lose-you-money/comment-page-1/#comment-813 Sun, 25 Oct 2009 15:53:03 +0000 http://blogs.reuters.com/columns/?p=953#comment-813 Hey, money people pay out as little as the traffic will bear. If I can make 30 percent on 8 percent money, yey for me. Of course when the commodity takes a dump the investor gets dumped on. Sounds to me like Las Vegas all over again. If you want to make a decent return you have to invest in something tangible, hold it and build it and then take your return. No free lunches today folks.

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By: Frank Ruffing http://blogs.reuters.com/breakingviews/2009/10/21/heres-why-commodity-trackers-lose-you-money/comment-page-1/#comment-627 Fri, 23 Oct 2009 15:20:09 +0000 http://blogs.reuters.com/columns/?p=953#comment-627 Agreed the roll decay is significant. But those investors without tankers, vaults or silos may find the cost bearable to participate.

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By: behindthecurve http://blogs.reuters.com/breakingviews/2009/10/21/heres-why-commodity-trackers-lose-you-money/comment-page-1/#comment-624 Fri, 23 Oct 2009 12:11:21 +0000 http://blogs.reuters.com/columns/?p=953#comment-624 re the remark by James… Most equity indices are quoted total return – i.e. with dividends reinvested”

that’s not my experience, most it seems to me are quoted excluding dividends.

Anyone on here able to confirm the situation for say the UK’s main indicies

Second question. If you buy an ETF which is designed to make money if the index falls ie a short ETF how is the ETF return affected by index dividends ?

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By: James http://blogs.reuters.com/breakingviews/2009/10/21/heres-why-commodity-trackers-lose-you-money/comment-page-1/#comment-575 Thu, 22 Oct 2009 07:25:34 +0000 http://blogs.reuters.com/columns/?p=953#comment-575 Most equity indices are quoted total return – i.e. with dividends reinvested, so it is not correct to say that a tracker should outperform because of dividends solely. Most index trackers actually underperform their total return benchmark. With commodity funds it is also worth noting that the cash collateral backing the futures has to be invested and with many money market funds underperforming their respective benchmarks since the banking crisis, this leads to further underperformance against the relevant commodities index.

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By: Anonymous2 http://blogs.reuters.com/breakingviews/2009/10/21/heres-why-commodity-trackers-lose-you-money/comment-page-1/#comment-570 Thu, 22 Oct 2009 00:35:11 +0000 http://blogs.reuters.com/columns/?p=953#comment-570 How many of the investors in tracker funds actually read the prospectus? I remember reading the one for Roger’s commodity fund over 5 years ago and concluded it was such a muddled mess that it wasn’t worth the potential returns.

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