Leveraged Commodities trading ETFs use debt or derivatives to magnify the returns of a commodity index. Such ETFs seek to generate a return that is usually two or three times the short-term returns of the underlying index. Since such ETFs focus on daily or weekly returns, they aren’t suitable for long-term investors. Let’s take a look at the top 10 Leveraged Commodities trading ETFs.
Top 10 Leveraged Commodities Trading ETFs
We have used the past one-year return data (from money.usnews.com) of the Leveraged Commodities trading ETFs to come up with the top 10 Leveraged Commodities trading ETFs.
ProShares Ultra Silver (AGQ, -45%)
ProShares Ultra Silver (NYSEARCA:AGQ) aims to match the daily investment result that corresponds to two times the daily performance of the Bloomberg Silver SubindexSM. This ETF normally invests in one or a combination of financial instruments depending on the benchmark. AGQ has more than $350 million in net assets and an expense ratio of 1.50%. It has given a return of over -31% year to date.
DB Base Metals Double Long ETN (BDDXF, -17%)
DB Base Metals Double Long ETN (OTCMKTS:BDDXF) aims to match 200% daily price and yield performance of the Deutsche Bank Liquid Commodity index – Optimum Yield Industrial Metals Excess Return. This index is made up of futures contracts of many popular base metals, aluminum, zinc and copper. BDDXF has more than $500k in net assets and an expense ratio of 0.75%. It has given a return of almost -30% year to date.
VelocityShares 3x Long Gold ETN (UGLDF, -14%)
Credit Suisse VelocityShares 3x Long Gold ETN (OTCMKTS:UGLDF) seeks to match three times the performance of the S&P GSCI Gold index ER. This index is made up of futures contracts of a single commodity, and its value fluctuations usually correlate with the changes in the price of gold. UGLDF has more than $50 million in net assets and an expense ratio of 1.35%. It has given a return of almost -13% year to date.
DB Gold Double Long ETN (DGP, -9%)
DB Gold Double Long ETN (NYSEARCA:DGP) seeks to match twice the daily performance of the Deutsche Bank Liquid Commodity index – Optimum Yield Gold Excess Return. This index shows the changes in the market value of certain gold futures contracts. DGP has more than $80 million in net assets and an expense ratio of 0.75%. It has given a return of almost -10% year to date.
ProShares Ultra Gold (UGL, -8%)
ProShares Ultra Gold (NYSEARCA:UGL) aims to match two times the daily results of the Bloomberg Gold SubindexSM. This ETF normally invests in one, or a combination of financial instruments, depending on the benchmark. UGL has more than $200 million in net assets and an expense ratio of 1.35%. It has given a return of over -7% year to date.
VelocityShares 3x Long Natural Gas ETN (UGAZF, 4%)
VelocityShares 3x Long Natural Gas ETN (OTCMKTS:UGAZF) aims to match three times the performance of the S&P GSCI Natural Gas Index ER. This index is made up of futures contracts of a single commodity. UGAZF has more than $45 million in net assets and an expense ratio of 1.65%. It has given a return of over 200% year to date.
DB Agriculture Double Long ETN (DAGXF, 14%)
DB Agriculture Double Long ETN (OTCMKTS:DAGXF) aims to match the price and yield performance of the Deutsche Bank Liquid Commodity index – Optimum Yield Agriculture. This index is made up of similar percentages of corn, wheat, soybean, and sugar futures contracts. DAGXF has more than $2.50 million in net assets and an expense ratio of 0.75%. It has given a return of over 3% year to date.
DB Commodity Double Long ETN (DYYXF, 65%)
DB Commodity Double Long ETN (OTCMKTS:DYYXF) aims to match twice the daily performance of the Deutsche Bank Liquid Commodity Index – Optimum Yield. This index reflects the change in the market value of commodity futures contracts for heating oil, corn, wheat, crude oil, aluminum and gold. DYYXF has more than $750k in net assets and an expense ratio of 0.75%. It has given a return of over 40% year to date.
ProShares Ultra Bloomberg Natural Gas (BOIL, 81%)
ProShares Ultra Bloomberg Natural Gas (NYSEARCA:BOIL) aims for daily investment results that are in line with two times the daily performance of the Bloomberg Natural Gas SubindexSM. It normally invests in Natural Gas futures contracts but may also invest in swaps. BOIL has more than $300 million in net assets and an expense ratio of 1.61%. It has given a return of over 200% year to date.
ProShares Ultra Bloomberg Crude Oil (UCO, 88%)
ProShares Ultra Bloomberg Crude Oil ETF (NYSEARCA:UCO) aims to match the daily investment results that equal two times the daily performance of the Bloomberg Commodity Balanced WTI Crude Oil IndexSM. It invests in one, or a combination of financial instruments, based on WTI sweet, light crude oil. UCO has more than $800 million in net assets and an expense ratio of 1.62%. It has given a return of over 50% year to date.
This article originally appeared on ValueWalk
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