Best way to play a commodity rally without futures.

[El Trado]

The daily trading volume average for NOK is 119 billion compared to 114 billion for the MXN, so the liquidity should be better (daily trading volume, Bis.org, April 2019)

NOK is actually the 14th most traded currency, while MXN is just behind

CLP is only 19 billion. So I guess it is more challenging.

 

[Bomp]

The daily trading volume average for NOK is 119 billion compared to 114 billion for the MXN, so the liquidity should be better (daily trading volume, Bis.org, April 2019)

NOK is actually the 14th most traded currency, while MXN is just behind

CLP is only 19 billion. So I guess it is more challenging.

CLP trades between usd 1.2-2bn daily if you include local spot and NDF’s. I think your figures above include rolls and spreads.

 

[El Trado]

CLP trades between usd 1.2-2bn daily if you include local spot and NDF’s. I think your figures above include rolls and spreads.

Didn't get too close into the details.. The source I used is here: https://www.bis.org/statistics/rpfx19_fx_annex.pdf

 

[Bomp]

Yes, that data will include all trades. Pure spot in MXN if I remember correctly is closer to 26bn.

 

[bone]

There are some really good ideas here - my suggestion would be to temper your expectations. Even a pure play ETF is not going to provide returns like a futures contract.

 

[Bomp]

There are some really good ideas here - my suggestion would be to temper your expectations. Even a pure play ETF is not going to provide returns like a futures contract.

Agree. But I am looking for a longer term position for the a small IRA I actively manage. Already had oil plays, now I need to add some metals and soft commodities.

 

[taojaxx]

Vanguard Commodity Strategy Fund (VCMDX). Beats the heck out of the Bloomberg Commodities Benchmark thanks to active management of maturities to avoid contango depletion. They discourage in and out trading though. Just sit there and watch it grow. One of my best 2020 moves (and I did very well last year).

 

[Nine_Ender]

Vanguard Commodity Strategy Fund (VCMDX). Beats the heck out of the Bloomberg Commodities Benchmark thanks to active management of maturities to avoid contango depletion. They discourage in and out trading though. Just sit there and watch it grow. One of my best 2020 moves (and I did very well last year).

Good for a passive investor but active trading of stocks is better in these really good recovery phases. I find this is one of the few areas the TSX is a really good place to trade because the stocks are highly inefficient in recognizing value and tend to oversell on bad news or commodity price drops. I attribute this to the conservative mentality of many Canadian investors and fund managers. Does require some patience at times.