Commodity ETFs Beating The Market In 2014 [DB Agriculture Long ETN DB Agriculture Long ETN]

Dow Jones-UBS Coffee ETN (NYSEARCA:JO) – Up 64.4%

Thanks to a severe drought in Brazil this year – the top producer and exporter of coffee – coffee prices have been flying high. However, the prices of coffee have eased recently on hopes of rainfall.

Nonetheless, many coffee analysts still believe that production is less likely to return to historic highs as too much rain in other parts of the world are expected to hit overall coffee production (read: Will Coffee ETFs Continue to Brew Returns in Q2?).

This ETN follows the Dow Jones-UBS Coffee Subindex Total Return, which seeks to deliver returns through one futures contract on coffee. The fund manages an asset base of $92.3 million and charges 75 basis points as fees.

Even after losing 15.6% in the past one month, JO is up 64.4% this year .

iPath Dow Jones-UBS Nickel Subindex Total Return (NYSEARCA:JJN) – Up 41.5%

Rising geopolitical tensions in Russia along with the Indonesian export ban led nickel to shine this year. The two nations combined fulfill more than a third of the nickel requirement in the world and have thus posed threats to supply, pushing prices higher.

This ETN tracks the Dow Jones-UBS Nickel Subindex Total Return and delivers returns by investment in the futures contracts on nickel.  The product is unpopular and illiquid with AUM of just $15.3 million and average daily volume of under 20,000 shares. The fund too charges 0.75% as fees.

The fund has returned 41% this year and is up 6% in the past one week (read: Nickel ETFs Rally on Russian Concerns and Indonesia Ban).

DB Agriculture Long ETN (NYSEARCA:AGF) – Up 37.1%

The fund tracks the Deutsche Bank Liquid Commodity Index-Optimum Yield Agriculture, which is designed to reflect the performance of certain corn, wheat, soybean and sugar futures contracts plus the returns from investing in three-month United States Treasury Bills.

The fund manages a very small asset base of $3.6 million and has the same fees as the above two funds. The fund has returned 37.1% this year.

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