Opinions
Hap (Robert) Sneddon FCSI
PowerShare's DB Commodity E.T.F.
DBC-N
TOP PICK
Sep 12, 2025
Stock price when the opinion was issued
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(A Top Pick Nov 30/15. Down 11.91%.) An example of the right idea but the wrong investment product. The idea was that the US$ was peaking at 100, and was going to start going lower, which was going to help commodity prices in general. It turns out this particular product is heavily weighted in energy.
Retail investors can’t buy commodity futures themselves. An ETF like this one can give retail investors access to the pure commodity space. He thinks commodities are poised to do well, and this is a way to ride the set of them. Investors will not get the leverage that they would get from buying the stock. If oil prices go up 10%, some oil companies will go up 20%. Investors will see the 10%, not the 20%. They also won’t get the risk.
Follows an index and weights the different units in it. This index contains all commodities related to oil, natural gas, metals, and agriculture. Now has a big allocation to oil and gas. Bit lumpy, but a trend has been in place since last year. If there's a breakdown, it's time to exit. But the upside and potential hedging is so awesome, it's worth the risk.
It's sort of a hedge against the quandary of the central banks. Employment is a bit lumpy, people are calling for rate reductions, but inflation pressures aren't going away (and have even ticked upwards in last couple of days). This ETF is your counterplay.