Morningstar Rating

ETF Research and Analysis

by Abby Woodham
Suitability
GreenHaven Continuous Commodity Index GCC is the only commodity exchange-traded fund to track an index of 17 equally weighted commodity futures. Most broad commodities funds weight their portfolios by economic significance,  Read more 

Bull Case

Because GCC weights each of its 17 commodities equally, the fund has a lower energy exposure than its peer group.
GCC's benchmark index employs a dynamic contract-rolling strategy to reduce the negative effects of contango.
Commodities offer significant portfolio diversification benefits because they are not correlated with equities and fixed income. Read more 

Bear Case

GCC is a limited partnership, and investors are liable for their share of capital gains incurred in the portfolio annually.
Futures contracts do not track spot price changes perfectly, and GCC's roll yield is a significant performance driver.
Commodities are volatile, and some studies show that their expected return over the risk-free rate is close to zero. Read more 

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