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Research Department

July-26-10

Commodity ETFs: Serious Flaws

The Bloomberg Business Week magazine published an article about the serious flaws of commodity exchange-traded funds. Investors have sometimes lost money even when commodity prices were rising. In fact, many of these ETFs invest in commodity futures rather than in actual physical commodities. The differential between futures and spot prices sometimes lead these ETFs to recurring losses. Futhermore, the article claims that some institutions have organized themselves to take advantage of these flaws at the expense of commodity ETF investors.

 

By: Raymond Kerzérho | 0 comments
July-05-10

A Great Round-up on Asset Classes

The latest Boeckh Investment Letter provides a great review on the expected return and risk of a variety of asset classes, including Value and Small-Cap Equities. It also provides insightful comments on the asset allocation process. Despite significant differences, the way Dr. Boeckh approaches asset allocation share many common points with PWL Capital’s method.

By: Raymond Kerzérho | 0 comments