Trend: The well-diversified Rogers International Commodity Index (RICI) has returned 21.6% over the last five years.
Seeking Alpha describes four ETNs (RJI, RJA, RJN, RJZ) based on the Rogers International Commodity Index (RICI). Excepts below.
Link: Debut of ETNs Tied to Rogers' Commodities Index - Seeking Alpha
...the Rogers International Commodity Index (RICI) is famous for being the most diverse of all commodity indexes—it includes not just oil and gold, but things like adzuki beans and rice.
Interestingly, that diversification has boosted historical returns: the RICI index has outperformed the DJ-AIG Commodity Index handily over the past five years, delivering 21.63% compound returns against 15.19% for the better-known DJ-AIG.
... on October 18, however, the ELEMENTS consortium quietly launched four ETNs tied to the Roger index (RJI) and three subindexes: Agriculture (RJA), Energy (RJN) and Metals (RJZ).ETNs are debt-linked products that trade like ETFs. They have marked advantages over ETFs, such as having zero tracking error and having (by most accounts) very favorable tax treatment. However, they do come with credit risk: If the underwriting bank defaults, investors are out of luck.
The Rogers commodity ETNs are backed by the Swedish Export Corp, a quasi-governmental bank from Sweden with an Aa1/AA+ credit rating.
Rogers Commodity Index Components and Weights
Agriculture (34.90%)
Energy (44.00%)
Grain (21.10%)
Wheat
20.06%
Crude Oil
47.73%
Aluminum
18.96%
Corn
13.61%
ICE Brent Oil
31.82%
Copper
18.89%
Cotton
11.60%
RBOB Gas
6.82%
Gold
14.22%
Soybeans
8.60%
Natural Gas
6.82%
Zinc
9.48%
Sugar
5.73%
Heating Oil
4.09%
Silver
9.48%
Soybean oil
5.73%
ICE Gas Oil
2.73%
Lead
9.48%
Live Cattle
5.73%
Platinum
8.53%
Coffee
5.73%
Tin
4.74%
Rubber
2.87%
Nickel
4.74%
Lumber
2.87%
Palladium
1.42%
Lean Hogs
2.87%
Cocoa
2.87%
Soybean Meal
2.15%
Canola
1.92%
Orange Juice
1.89%
Adzuki Beans
1.43%
Rice
1.43%
Oats
1.43%
Barley
0.77%
Greasy Wool
0.72%
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