Why Has This Commodities ETF Outperformed So Much?
Well, so far this year, SDCI is significantly outperforming plain vanilla beta commodity ETF peers by a pretty meaningful margin.
So, congrats on that.
It's especially impressive given the chaos of tariffs and the geopolitical turmoil that's happening right now.
What has contributed to SDCI success and how might investors use it inside their portfolios? >> Well, SDCI is it's not an active fund, but it is a uh uses a systematic uh rules-based system. rebalances every month.
And what it does really the the the goal there is to give uh investors exposure to commodities that maybe are a little off the beaten path.
Just take Coco for example.
It was up 300% last year.
A lot of commodity funds either don't have an exposure to cocoa or it's a very small exposure where we uh we equal weight the commodities we hold.
So we can have a more meaningful exposure to things like cocoa uh to things like this year it's cattle that uh everybody's seen beef prices are are up and that's because cattle herds are uh at a uh 70-year low.
So we have exposure uh through those those rules.
Um we can kind of get into those uh commodities that that you wouldn't expect.
And the the rules what we look at is we're looking at something that indicates to us low inventory.
Uh and if inventories relative to demand if uh inventory is low relative to demand that commodity has a higher chance of of outperforming over time.
So SDCI uh the way that investors can use it is absolutely to use it as a core commodity holding as a as your broad commodity allocation a diversification strategy and uh it was designed to give you strong correlation to the traditional commod or correlation traditional commodity indices and be that broad commodity fund but hopefully offer uh a little uh a little extra in terms of the the system and the the um allocation to different commodities and we've seen that uh play out over the years and and the fund's been a performance leader and we're very uh very pleased with that.
