MFM iFunds ETF Commodity Fund sounds good

purch

JP Morgan Natural Resources has hardly any agriculture

Thanks..........:T

wombat42_2

purch wrote: »

Thanks..........:T

Thats the choice of the JP Morgan Nat res fund manager. He could have loads of agriculture he wanted to but most likely he has bottled out because he doesnt have the expertise. He does have a bit of aggriculture though.

jon3001

wombat42 wrote: »

The Ifunds has significantly better performance than the passive ETF:

I was playing around with the charts on HL and overlaying AIGC with this fund's performance. The story seems to be that between Nov '06 to Nov '07 the fund underperformed AIGC by wide mark. After Nov '07 it put on an impressive spurt of outperformance.

Since Nov '06 they delivered about the same performance.

For anyone looking at buying an ETF they should look at both FAIG and AIGC. I switched from AIGC to FAIG recently - historically (well back-tested anyway) it has delivered higher performance with less volatility. I believe this has to do with contango and technical reasons involving the roll yield of commodity futures which I expounded in another thread.

jon3001

wombat42 wrote: »

Anyway I have just purchased a slug of the Ifund.

Hi Wombat,

Glad to see you've finally warmed to the idea of getting some exposure to commodity futures! They seem to be an often overlooked asset-class - most people seem primarily interested in equities.

Remember that this investment should be broadly uncorrelated with the stockmarket and therefore be a good diversifier. If you're a long-term investor then you won't be jumping ship when fortunes switch and equities are outperforming commodities. In the long-run you can get better returns by diversifying across uncorrelated asset-classes.

wombat42_2

jon3001 wrote: »

I was playing around with the charts on HL and overlaying AIGC with this fund's performance. The story seems to be that between Nov '06 to Nov '07 the fund underperformed AIGC by wide mark. After Nov '07 it put on an impressive spurt of outperformance.

Since Nov '06 they delivered about the same performance.

For anyone looking at buying an ETF they should look at both FAIG and AIGC. I switched from AIGC to FAIG recently - historically (well back-tested anyway) it has delivered higher performance with less volatility. I believe this has to do with contango and technical reasons involving the roll yield of commodity futures which I expounded in another thread.

Well I have superimposed AIGC and the IFund using H&L and between Nov '06 to Nov '07 and the Ifund seems to just win. Maybe you can give a link to the H&L page with your superimposed graph.

H& L dont seem to do FAIG.

I do however notice there is a Etfs Commodity Securities Etfs All Commodities (AGCP) which seems to have only been available in the last 3 months and has matched the Ifund during that time.

wombat42_2

I think I found "FAIG" on H&L by searching for it and comparing its graph with the Ifund, the IFund wins although it is a draw up to Nov 2007

jon3001

wombat42 wrote: »

Well I have superimposed AIGC and the IFund using H&L and between Nov '06 to Nov '07 and the Ifund seems to just win. Maybe you can give a link to the H&L page with your superimposed graph.

http://img152.imageshack.us/my.php?image=chartbuilderpz1.png
AIGC in blue
IFund in red

wombat42 wrote: »

I do however notice there is a Etfs Commodity Securities Etfs All Commodities (AGCP)

That's the same index (AIGC) but in GBP rather than USD.

wombat42_2

jon3001 wrote: »

http://img152.imageshack.us/my.php?image=chartbuilderpz1.png
AIGC in blue
IFund in red



That's the same index (AIGC) but in GBP rather than USD.

That is weird as whenever i compare the ifund to two different ETFs the ifund wins. Try adding FAIG to AIGC and the Ifund and you will see what i mean.

And actually the Ifund winning is consistent with the morning star info:

http://www.morningstar.co.uk/UK/snapshot/snapshot.aspx?id=F0GBR06XK3


http://www.morningstar.co.uk/UK/snapshot/snapshot.aspx?id=F0000000GA

jon3001

wombat42 wrote: »

That is weird as whenever i compare the ifund to two different ETFs the ifund wins. Try adding FAIG to AIGC and the Ifund and you will see what i mean.

FAIG has a much shorter history (I think it was launched around Oct '07). So when you add that ETF you only see the more recent data where iFunds has been making the sharp gains.

wombat42 wrote: »

And actually the Ifund winning is consistent with the morning star info:

They don't seem to be tabulating the 2006 data when iFunds took a sharp fall whilst AIGC was relatively steady.

wombat42_2

jon3001 wrote: »

FAIG has a much shorter history (I think it was launched around Oct '07). So when you add that ETF you only see the more recent data where iFunds has been making the sharp gains.



They don't seem to be tabulating the 2006 data when iFunds took a sharp fall whilst AIGC was relatively steady.

With respect you havent answered my question. You get completely different results on the H&L graph if you compare the Ifund with any two other ETFs.