ETF Chart of the Day: Commodities

ETF Trends

Thinly traded Goldman Sachs Connect S&P Enhanced Commodity Total Return Strategy ETN (GSC) has had an active week, losing more than 70% of its total assets outstanding via redemption activity.

About $190 million left the fund in the past day or two.

It is one of two entries into the ETF space by Goldman Sachs along with Goldman Sachs Claymore CEF Index (GCE) and the fund debuted in July of 2007 and averages only about 26,000 shares traded per day.

The ETN takes a composite approach and attempts to deliver results to the investor reflective of owning a broadly diversified portfolio of commodity futures.

Broad based commodity futures funds such as PowerShares DB Commodity Index (DBC) have rallied recently and have traded on a torrid pace, seeing significant inflows of assets in recent weeks.

DBC has now grown to a $6.1 billion fund as a result of the recent asset accumulation.

While it is difficult to discern exactly why funds have vacated GSC recently, it is very feasible that an institutional holder or holders are simply transitioning assets that were parked in GSC into another related fund.

Other funds in this space include DJP (iPath DJ Commodity Index ETN), GSG (iShares GSCI Commodity Index), and GCC (Greenhaven Continuous Commodity) for instance, and all have had a nice run in the past several months beginning in late June.

Year to date, DBC has fared the best in this space, down 3.31% whereas GSG has lost 5.42%, GSC -5.91%, DJP -6.65%, and GCC has fallen 8.88%.

Goldman Sachs Connect S&P Enhanced Commodity Total Return Strategy ETN

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