Commodities Are Top Weekly Performer For 2nd Week
James Picerno | Dec 05, 2016 07:38AM ET
Commodities continued to rise last week, gaining the most among the major asset classes for the five trading days through December 2, based on a set of proxy ETFs. The latest pop marks the second straight week that broadly defined commodities led the field.
The iPath Bloomberg Commodity ETN (NYSE:DJP increased 2.3% last week. A key driver has been the recent rise in crude oil prices, triggered by last week’s advised in a note to clients today.
Meanwhile, key financial markets fell last week, including the US stock market. Last week’s biggest loser among the major asset classes: US equities. The Vanguard Total Stock Market ETF (NYSE:VTI) dipped 1.1% over the five trading days through December 2.
The weakness in stocks and bonds generally weighed on an ETF-based version of the Global Markets Index (GMI.F). This investable, unmanaged benchmark that holds all the major asset classes in market-value weights slipped 0.4% last week.
The recent rebound in commodities has revived DJP, lifting the ETN to a solid one-year gain of nearly 8%, based on the trailing 252-trading-day return—close to the top performer for the year (US stocks) via VTI’s 9.6% total return over the past 12 months.
Meanwhile, GMI’s trailing one-year return ticked higher after last week’s trading. The benchmark is now ahead by a modest 4.5% for the trailing 252 trading days, a bit firmer than the one-year gain from the previous week.
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