Commodities may provide a diversification benefit over the very short term but are probably not a useful component in a long-term portfolio. Do you own them?
@-robertri6093
Жыл бұрын
Have you ever thought to own a com when its price is lower than the Production cost?. Dont care about supply or demand? Do you think it will make the profit after then?. I mention this issue for your long-term investment.
@jeffreym3233
2 жыл бұрын
Great video! I used to own GSG, a commodities ETF, back in the 2000s. It had the dreaded K-1, a fact that my financial advisor neglected to tell me about. It also deprecated in value. After a few painful years, I sold all shares. My tax preparer needed to engage a specialist colleague to file properly. Bad experience. I now call GSG as “Great Suffering, Go away!”
@OptimizedPortfolio
2 жыл бұрын
Thanks for sharing, Jeffrey!
@tomsettles6873
2 жыл бұрын
Agreed. Short term traders only. You can make a lot of money if you're willing to gamble a little, but these should not be part of any long term strategy.
@OptimizedPortfolio
Жыл бұрын
Thanks for watching, Tom!
@mplate1792
11 ай бұрын
Dividend wise, I was lucky to get 50% of my initial commodity investment back in just 2 years. The total return isn't that high because the share prices have come down. It's a small position and I'm in no hurry to lock in the total return rate. I will continue to hold it. But I agree that commodities are normally a short-term holding. If I had it to do again, I would buy it for the December dividend, then sell it immediately after (in my Roth).
@OptimizedPortfolio
11 ай бұрын
Thanks for sharing!
@hernstv
2 жыл бұрын
I own PDBC . Good return so far
@Drumbeat52
2 жыл бұрын
I own this also and have been wondering about the annual dividend it pays. Paid $7.15 share in 2021. Looks possibly higher this year. Is it worth holding this ETF for just the dividend??
@OptimizedPortfolio
Жыл бұрын
Thanks for watching!
@jmcm152
2 жыл бұрын
Brilliant video! I've been wondering this very thing recently (if diversification from commodities is worth it and what are the best commodities ETFs)
@OptimizedPortfolio
Жыл бұрын
Thank you!
@beauneo
2 жыл бұрын
Curious about your thoughts from Jeremey Grantham. He posits that we’re at a limit with certain commodities. With no cap ex in basic metals, oil etc. And that we’re going to continue to have these basic items in a short supply cycle going forward. I own COMT in my modified all weather portfolio along with Utilities thanks to your videos.
@OptimizedPortfolio
Жыл бұрын
I'll check it out
@henryterranauta9100
Жыл бұрын
An eye 👁 opener
@OptimizedPortfolio
Жыл бұрын
👁👁
@radfaraf
2 жыл бұрын
I held one earlier this year for a like a month then sold it because in trying to figure out a plan of how would I know when to sell I realized they can go down in value very fast and are too complicated for me to figure out when is the best time to sell -- so I sold while I was still ahead.
@OptimizedPortfolio
Жыл бұрын
Thanks for watching!
@clockywork
Жыл бұрын
You sold it after a month? That's not investing
@ruskiromka
2 жыл бұрын
I own COM - it uses trend following to only own commodities moving in the right direction. It's a bit like managed futures but only commodities.
@OptimizedPortfolio
2 жыл бұрын
Cool, thanks for sharing, Roman!
@davidpate6095
2 жыл бұрын
Do you have to file a K-1?
@patrickk.7406
Жыл бұрын
Do you understand why COMT is going down 22% the last 2 days? 😳
@edlafond1
Жыл бұрын
@@patrickk.7406 Yeah, that $8+ dividend will take a pretty big bite out of the share price
@patrickk.7406
Жыл бұрын
@@edlafond1 okay so do you think it will go up again?
@FBC_USA
Жыл бұрын
Commodities are priced in dollars. In a highly inflationary environment, commodities are poised to balloon in price with the money supply.
@OptimizedPortfolio
Жыл бұрын
Thanks for watching!
@davinopadilhavieira353
Жыл бұрын
Good afternoon! I'm Brazilian and I liked your analysis. The video is from a year ago, at the moment what can we expect from the PDBC ETF?
@OptimizedPortfolio
Жыл бұрын
Thanks! We can never know what to expect from anything.
@savysav1253
Ай бұрын
Is your sentiment still the same on this?
@OptimizedPortfolio
Ай бұрын
yes
@otmanalami6621
2 жыл бұрын
I think that trading commodities can be used in crisis but not as investment.
@OptimizedPortfolio
Жыл бұрын
Thanks for watching!
@MrGuano11
Жыл бұрын
From 2000 to 2012 commodities outperformed the S&P500 if you check the Global Price Index of All Commodities Index to SP500 ratio. With current market conditions like increasing inflation and low inventories I believe this will happen again soon.
@OptimizedPortfolio
11 ай бұрын
In fairness, almost anything outperformed the S&P 500 for 2000-2012.
@m.motionstudio2877
Жыл бұрын
hi there, i'm new to trading and just looking around for etfs with high Dividend Yield and came across COMT which has almost 30% Dividend Yield so i thought it's a good thing and made some research and found your video, so what am i missing here?
@OptimizedPortfolio
Жыл бұрын
Div yield isn't the whole story.
@m.motionstudio2877
Жыл бұрын
Thanks, at this subject i can trust you more than i trust my self cause i know so little about it, i'll stay away from it@@OptimizedPortfolio
@johnnylunchbox6066
Жыл бұрын
it says on yahoo that comt has a 31% yield. if u only bought this fund and reinvested all your dividends wouldn't you grow at 31% a year despite economic conditions. commodities wont go up your right, but they won't crash too hard, and even if they do with 30% you should be able to use dividends to live off and not even be affected by the price, cause you dont have to sell to live. is there something im missing here this sounds pretty good for 0.25% expense ratio
@OptimizedPortfolio
Жыл бұрын
No, not how it works. Look at share price history. That's also 12 mo. trailing yield. 30 day SEC yield is 1/10 of that.
@stevec.7017
Жыл бұрын
On top of all that all three ETFs only pay dividends once per year. That's a long wait for a variable dividend.
@OptimizedPortfolio
Жыл бұрын
Indeed, Steve.
@ryanbaileyboxing
Жыл бұрын
I own comt It is 7% of a 5% slice of my portfolio
@OptimizedPortfolio
Жыл бұрын
Thanks for sharing!
@patrickk.7406
Жыл бұрын
Why is COMT going 22% Down in just 2 days??? 😳
@OptimizedPortfolio
Жыл бұрын
Annual ex distribution date
@patrickk.7406
Жыл бұрын
@@OptimizedPortfolio Okay so its possible that the chart will jump back up next days?
@OptimizedPortfolio
Жыл бұрын
@@patrickk.7406 No. Share price compensates for dividend payment. It's a net-zero event: www.optimizedportfolio.com/dividends/
@JakobHelm
Жыл бұрын
I own the WisdomTree Agriculture ETF (ISIN GB00B15KYH63). Why would it not be a good longterm investment if you believe in Climate Change? The water shortage in Europe is nuts. What am I missing?
@OptimizedPortfolio
Жыл бұрын
All public information and expectations are already reflected in prices. But the future is unknowable, so it may be a good investment over some time period. The point is commodities tend to lag over the long term. The fund you describe may not be straight commodities; I'm not familiar with it.
@jameskeefe1761
9 ай бұрын
Most commodity ETFs are not very well designed and can have big drawdowns. They have strategy in their name but that means nothing in regard to avoid drawdowns and losses. There is one long-flat commodity ETF, LFEQ I know of in the US. So overall the selection is poor, they perform badly, maybe if one thinks commodifies will go up in the immediate term, but this takes someone intimately familiar with the markets, so these ETFs are pretty much useles rubbish for average joe
@OptimizedPortfolio
Ай бұрын
Yea. It seems Trend and Carry might be superior ways to get exposure to commodities.
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