The Wall Street Journal’s Shefali Anand reports the slide in commodity prices is hammering commodity related ETFs.
Funds that invest in oil, gas and other natural-resources companies are down the most, with an average 44% decline in the past three months. Funds that invest in companies related to precious metals such as gold and silver have fallen on average 37% over the same time period.
Mutual funds and ETFs that invest in the stocks of energy and metals companies are hurting more than the funds that invest in the underlying commodities directly.
For instance, the U.S. Global Investors World Precious Minerals fund, which has half its investments in gold-mining companies, has lost far more than the SPDR Gold Shares ETF (GLD), which owns gold bullion.
Funds that are more narrowly focused have taken a larger hit. The Market Vectors Coal ETF (KOL), which invests only in coal-oriented companies, is down 60% for the past three months, according to Lipper.