Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Soft Commodity ETFs Suffer A Slaughter

As markets prepare for another four years of Barack Obama, it is safe to say that trading has been anything but smooth. With most benchmarks suffering a poor string of sessions last week, many are looking to the near-term or have focused on exactly what happened last week. But with commodity investing, it is always important to take a look at longer-developing trends, as they can often signal how a particular asset will perform in the near future [for more softs news and analysis subscribe to our free newsletter].

Barack Obama serious

Soft commodities have suffered a rough month, as their trailing four-week returns are among the worst in this asset class. While many have been focused on surging precious metals or lumber’s massive spike, many have overlooked the poor performance from this specific group of commodities. Softs are notoriously frustrating to trade, as they are extremely volatile and can often exhibit hefty movements without warning, and the past four weeks have been no exception.

Below, we outline several ETFs covering the softs world as well as their unfortunate performances in the trailing four-week period.

iPath DJ-UBS Sugar Subindex Total Return Sm Index (NYSEARCA:SGG): This sugar fund has taken the worst hit, as it has lost more than 8.2% in the last month.

iPath DJ-UBS Coffee Subindex Total Return SM Index (NYSEARCA:JO): One of the most popular softs products out there, JO has slipped more than 5.6% over the last four weeks.

iPath DJ-UBS Cocoa Subindex Total Return SM Index (NYSEARCA:NIB): Just barely behind coffee, this ETN has surrendered 5.4% over the same time frame.

iPath DJ-UBS Cotton Subindex Total Return SM Index (NYSEARCA:BAL): Though BAL has not performed as badly as its peers, the ETN is still down nearly 2.7% in the last month.

iPath DJ-UBS Softs Subindex Total Return SM Index (NYSEARCA:JJS): This ETN tracks the entire softs space, with exposure to all four of the aforementioned commodities. Its four-week performance has yielded losses of more than 7%.

This article was originally written by Jared Cummans, and posted on CommodityHQ.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.