The ETF Spotlight is on

iShares S&P GSCI Commodity-Indexed Trust

Ticker Symbol: GSG
Family: iShares by BlackRock
Exchange: NYSE ARCA

Brief: The iShares S&P GSCI Commodity-Indexed Trust tracks the S&P GSCI (formerly the Goldman Sachs Commodity Index), a benchmark for investment in the commodity markets and as a measure of commodity performance over time. The GSCI trades on the Chicago Mercantile Exchange. GSG provides exposure to  a broad range of commodities, allowing convenient access to energy, industrial and precious metals, agricultural, and livestock markets.

Objective: The Trust seeks to track the results of a fully collateralized investment in futures contracts on an index composed of a diversified group of commodities futures. From iShares by BlackRock site: The iShares S&P GSCI Commodity-Indexed Trust is not a standard ETF. The Trust is not an investment company registered under the Investment Company Act of 1940. Shares of the Trust are not subject to the same regulatory requirements as mutual funds. Investments in shares of the Trust are speculative and involve a high degree of risk. Before making an investment decision, you should carefully consider the risk factors and other information included in the prospectus.

Similar ETFs to research:

  • iShares Commodities Select Strategy ETF (COMT)
  • iShares Bloomberg Roll Select Commodity Strategy ETF (CMDY)
  • Invesco DB Commodity Index Tracking Fund ( DBC)
  • WisdomTree Continuous Commodity Index Fund (GCC)

Where it may fit in a portfolio: “Managed Commodities” or”Alternatives” space. Commodities may be an important addition to your portfolio, based on your objectives. Commodities is a general term that has come to describe asset classes as divers as gold and silver, to lumber and pork bellies, and as such, are not generally seen as a “stand-alone” investment unless the objective is to pursue profits from pure speculation. Generally, long-term investors will limit alternative asset classes, like broad, diversified basket of commodities, to no more than 10% of their portfolio, using them as a hedge to non-correlated assets and as a risk management tool.  As always, only individual objectives should determine any asset’s weighting in a portfolio.

May appeal to: Investors seeking to diversify beyond financial assets in their portfolio.

Full description from Distributor, Risk and Return stats, click here!

NEVER invest in a mutual fund or ETF without first reading the prospectus. ETF Spotlight posts are for information only, solely an educational tool to enhance the investor’s understanding of financial instruments in the marketplace, and do not constitute a recommendation or endorsement of any exchange traded fund, fund company or investment strategy. It is best to seek guidance from a certified financial planner or professional advisor before making decisions to buy or sell securities. Data is current as of date of publication, taken directly from distributors website and considered reliable.

Leave a Reply

You have to agree to the comment policy.