Direxion Auspice Broad Commodity Strategy ETF

COM

Market cap $181M

The Direxion Auspice Broad Commodity Strategy ETF (COM) posted a positive performance for 2024, delivering a return of +5.91%, despite ending the final quarter slightly down with a Q4 performance of -0.80%. To view the Fund's full standardized performance, click here.

The Direxion Auspice Broad Commodity Strategy ETF (COM) employs a quant-driven strategy that delivers low volatility (7% annualized) compared to peers like DBC, making it a stable choice. The ETF tracks 12 commodities, dynamically shifting positions between long and flat (cash) based on market trends, minimizing losses during downturns while capitalizing on upward trends. As of now, the fund is long on corn, sugar, natural gas, gold, and silver, reflecting its ability to align with positive trends and avoid underperforming assets like oil.

Commodities have been challenging, but the Direxion Auspice Broad Commodity Strategy ETF offers a rules-based, long/flat approach to manage exposure and limit losses. The COM ETF focuses on Agriculture, Energy, and Metals, holding cash when commodities aren't trending, aiming to avoid prolonged downtrends. Compared to other broad commodity ETFs, COM's strategy reduces volatility and limits draw-downs, though performance has been similar to always-exposed funds.

Precious metals are leading big gains for commodities this year and some think the runway for both hard and soft assets could be the place to be until inflation cools off.

Aided by strong performance in the first four-plus months of the year, advisors are looking more closely at commodities. We believe most client portfolios remain dominated by equities and fixed income.

Concerns about inflation are top of mind again, with consumer prices and producer prices rising higher last week. This impacted the bond market as well as commodity prices.

Direxion Auspice Broad Commodity Strategy ETF is a commodities-focused exchange-traded fund that invests in a basket of 12 commodities futures contracts. The fund aims to outperform the Auspice Broad Commodity Index and reduces volatility by exiting positions when proprietary signals indicate a bear market. COM has low volatility compared to its peers, offers diversification benefits, and has shown strong performance during commodity up-cycles.

Commodities entered 2023 behind a strong performance in 2022. For investors revisiting their portfolios ahead of 2024, it may be worth assessing the commodities outlook.

The S&P 500 has rallied in recent days and was up close to 20% for the year. However, heading into 2024, many advisors are exploring a range of investment ideas that offer exposure beyond the stock market.