PDBC - Commodities Are On A Roll Playing The Upside Through PDBC
2024-03-28 01:31:33 ET
Summary
- Cocoa prices have surged, surpassing the price of copper, while the broader commodity complex has been in rally mode.
- Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF has diversified commodity exposure and may benefit from an improved macro backdrop.
- PDBC has high exposure to energy commodities and low allocation in soft commodities like agriculture.
- I highlight key price levels to monitor as bullish seasonality gets underway.
Cocoa prices have gone to the moon. The soft agricultural commodity is now more expensive than copper ($10,000 per metric ton for the former and $8,700 per metric ton for the latter). Unfortunately for investors holding the Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF (PDBC), there is no 'brown gold' in that ETF or the Invesco DB Commodity Index Tracking Fund ETF (DBC). Big picture, the S&P GSCI Commodity Index is up more than 8% in 2024....
Commodities Are On A Roll, Playing The Upside Through PDBC