JEPI - PDBC: Commodities Bore Me (Technical Analysis)

2024-06-23 09:36:43 ET

Summary

• PDBC is a diversified commodities ETF that invests in energy, precious metals, industrial metals, and agriculture commodities.
• The ETF uses a Cayman Islands subsidiary and provides transparency in its holdings, with a 50%/25%/25% allocation to energy, metals, and agriculture.
• PDBC has lagged behind the S&P 500 historically but can act as a diversifier in portfolios during periods of inflation, offering potential benefits in commodity exposure.

I don't mean to be flippant. I have invested in commodities through ETFs and stocks for a few decades. But as a 44-year chartist who uses technical analysis as the last but most important step in making any investment decision for my portfolio, I do see that despite a lot of up-and-down price action and hints of a long-awaited upside breakout, the status quo for the basket of commodities that is the Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF ( PDBC ) is stagnation, and no clear direction. Even the name of the fund, a long way of saying "a basket of commodities without the hassles of a K-1 tax form," is pretty boring....

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