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Top Three Commoditiy ETFs of 2013

December 12, 2013 | About:
Pushpa Naresh

Pushpa Naresh

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The surprise topper among the commodity-based ETFs was the silver metal-linked VelocityShares 3x Inverse Silver ETN linked to the S&P GSCI Silver Inverse Index (DSLV) ETF. It has been issued by VelocityShares and has been traded on the market since October 2011.

I find it surprising because for the major part of this calendar year the price of silver metal was under severe strain due to the uncertain economic conditions which prevailed in the developed markets of the U.S. and Europe, coupled with a drastic slow down in the fast-growing emerging markets of China, India and Brazil, which had previously driven demand for this precious metal. This weakness in the pricing of the metal had led to the mining firms which were focused on silver extraction to suffered losses related to cost of production not being met by the prevailing cost of the metal at the markets.

In spite of all these challenges, this high performing ETF has managed to post appreciation of 82.2 percent for the trailing 12 months. At current valuations, the stock has been trading at $49.03 per share which is well above its 52-week low price point of $48.12.

VelocityShares 3x Inverse Gold ETN Linked to S&P GSCI Gold Index Excess Return (DGLD)

Another underdog ETF which has made it to the top of the charts this year is this Gold-based VelocityShares 3x Inverse Gold ETN linked to the S&P GSCI Gold Index Excess Return (DGLD) ETF. It has managed to post a solid 81.89 percent appreciation this year which makes it a close second after its silver cousin. This ETF has accumulated a market cap of $24 million and is trading at $75.01 per share which is almost the double of its prior 52-week low price point of $38.03. The fund tracks its performance against the S&P GSCI Gold Index ER.

UltraShort Silver (ZSL)

UltraShort Silver (ZSL) is silver/metal-linked ETF. It has come in third on my list thanks to its 67.27 percent appreciation in the past 11 months. This fund tracks its performance against the Silver Bullion index “measured by the U.S. Dollar fixing price for delivery in London” and is trading at $83.73 per share which is almost double its prior 52-week low price point. Since its inception in 2008 this fund has been a strong performer and has shown a super impressive 95 percent increase in value over the past 12 months.

About the author:

Pushpa Naresh
I have done my MBA (Finance) and an avid market tracker.

Rating: 2.0/5 (4 votes)

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