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New Replacement for PCRIX, PCRDX!!!
Old 06-07-2006, 11:56 AM   #1
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New Replacement for PCRIX, PCRDX!!!

Well, we knew it was coming soon, but it is here

Barclays has finally dropped their commodity Exchange Traded Notes (ETN)

they have both a GSCI and AIG-DJIA version

http://www.ipathetn.com/dj_aig_overv...p?c=DCA01&ch=z


symbols are DJP and GSP

ER is 75bps
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Re: New Replacement for PCRIX, PCRDX!!!
Old 06-07-2006, 12:08 PM   #2
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Re: New Replacement for PCRIX, PCRDX!!!

So these are basically the underlying notes that PCRIX has shifted to? I will have to read the prospectus.

ER is about the same as PCRIX, but significantly lower than PCRDX. If it delivers the same exposure, this is a godsend for those of us with access to only PCRDX.
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Re: New Replacement for PCRIX, PCRDX!!!
Old 06-07-2006, 12:16 PM   #3
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Re: New Replacement for PCRIX, PCRDX!!!

Quote:
Originally Posted by brewer12345
So these are basically the underlying notes that PCRIX has shifted to?* I will have to read the prospectus.

ER is about the same as PCRIX, but significantly lower than PCRDX.* If it delivers the same exposure, this is a godsend for those of us with access to only PCRDX.
Check it out and let us know.*
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Re: New Replacement for PCRIX, PCRDX!!!
Old 06-07-2006, 12:19 PM   #4
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Re: New Replacement for PCRIX, PCRDX!!!

Quote:
Originally Posted by saluki9
Well, we knew it was coming soon, but it is here

Barclays has finally dropped their commodity Exchange Traded Notes (ETN)

they have both a GSCI and AIG-DJIA* version

http://www.ipathetn.com/dj_aig_overv...p?c=DCA01&ch=z


symbols are DJP and GSP

ER is 75bps
Thanks, Saluki!

Ha
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Re: New Replacement for PCRIX, PCRDX!!!
Old 06-07-2006, 12:48 PM   #5
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Re: New Replacement for PCRIX, PCRDX!!!

OK, here is the skinny. DJP is cheaper than PCRDX, but not PCRIX. Plusses are:

- potentially lower cost
- better transparency (no PIMCO mucking around with credit default swaps on GMAC, etc.)
- exchange traded
- the big one: MUCH MORE TAX EFFICIENT, since you don't get taxed until you sell and then it is a cap gain.

Minuses:

- Have to pay attention to discount/premium to NAV when you buy it
- Trading volume may or may not be high enough for one's liquidity purposes
- Credit exposure to Barclay's (Aa1/AA ratings, but still)


Bottom line: if you hold PCRDX, this looks like a slam dunk (probably a wash if you have access to PCRIX). If you hold or want to hold commodities in a taxable account, this is a no-brainer.

I am probably going to liquidate my PCRDX and buy DJP.
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Re: New Replacement for PCRIX, PCRDX!!!
Old 06-07-2006, 12:51 PM   #6
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Re: New Replacement for PCRIX, PCRDX!!!

I'm very excited about these for tax reasons.

I was only willing to hold PCRIX in a tax def account. Because I can't get it in my 401(k) and I can't contribute to my Roth anymore this is a huge thing for me.

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Re: New Replacement for PCRIX, PCRDX!!!
Old 06-07-2006, 12:51 PM   #7
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Re: New Replacement for PCRIX, PCRDX!!!

Thanks, you just described my situation perfectly.
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Re: New Replacement for PCRIX, PCRDX!!!
Old 06-07-2006, 02:49 PM   #8
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Re: New Replacement for PCRIX, PCRDX!!!

Thank a bunch for the update/news. I had not pulled the trigger on the pimco fund yet, so this is good timing for me.
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Re: New Replacement for PCRIX, PCRDX!!!
Old 06-08-2006, 08:50 AM   #9
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Re: New Replacement for PCRIX, PCRDX!!!

Q: What happens when the iPath notes mature in 2036?

Do investors just get all their money back and then have to pay the cap gains and re-invest in another note?

thanks,
Alec
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Re: New Replacement for PCRIX, PCRDX!!!
Old 06-08-2006, 08:57 AM   #10
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Re: New Replacement for PCRIX, PCRDX!!!

Quote:
Originally Posted by ats5g
Q: What happens when the iPath notes mature in 2036?

Do investors just get all their money back and then have to pay the cap gains and re-invest in another note?

thanks,
Alec
Yup.

Assuming that this issue does well, I would expect to see more series of these notes issued. Some of them may have longer maturities.
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Re: New Replacement for PCRIX, PCRDX!!!
Old 06-08-2006, 09:13 AM   #11
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Re: New Replacement for PCRIX, PCRDX!!!

Is there anyway for a company to structure an ETF [that doesn't mature] like one of the mutual funds that does the commodities thing? I suppose there would be capital gains distributions, etc, for these.

- Alec
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Re: New Replacement for PCRIX, PCRDX!!!
Old 06-08-2006, 09:16 AM   #12
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Re: New Replacement for PCRIX, PCRDX!!!

Quote:
Originally Posted by ats5g
Is there anyway for a company to structure an ETF [that doesn't mature] like one of the mutual funds that does the commodities thing? I suppose there would be capital gains distributions, etc, for these.

-* Alec
Checkout DBC. It is an ETF that uses commodity futures and collateral and never matures. But that way you won't get the favorable tax treatment.
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Re: New Replacement for PCRIX, PCRDX!!!
Old 06-08-2006, 09:39 AM   #13
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Re: New Replacement for PCRIX, PCRDX!!!

Quote:
Originally Posted by ats5g
Q: What happens when the iPath notes mature in 2036?

Do investors just get all their money back and then have to pay the cap gains and re-invest in another note?

thanks,
Alec
Ask somebody who owns PCRIX or PCRDX in a taxable account. I will be happy to pay my taxes in 30 years as opposed to getting clobbered each year.
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Re: New Replacement for PCRIX, PCRDX!!!
Old 06-14-2006, 01:37 PM   #14
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Re: New Replacement for PCRIX, PCRDX!!!

Ok you dirty market timers, DJP has dropped from $50/sh to around $47.50/sh since we discussed it a few days ago. Good time to buy or do you think commodites have a lot more downside from here?*
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Re: New Replacement for PCRIX, PCRDX!!!
Old 06-14-2006, 01:45 PM   #15
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Re: New Replacement for PCRIX, PCRDX!!!

Looks attractive to me from here. We are one hurricane away from another huge spike in commodities prices.
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Re: New Replacement for PCRIX, PCRDX!!!
Old 06-14-2006, 01:57 PM   #16
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Re: New Replacement for PCRIX, PCRDX!!!

Quote:
Originally Posted by brewer12345
Looks attractive to me from here.* We are one hurricane away from another huge spike in commodities prices.
Well while I'm stocking up on canned goods for the summer hurricanes I might as well stock up on some DJP.*
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Re: New Replacement for PCRIX, PCRDX!!!
Old 06-14-2006, 02:04 PM   #17
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Re: New Replacement for PCRIX, PCRDX!!!

Quote:
Originally Posted by DOG51
Well while I'm stocking up on canned goods for the summer hurricanes I might as well stock up on some DJP.*
What's the difference? They are both commodities with no investment value.
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Re: New Replacement for PCRIX, PCRDX!!!
Old 06-14-2006, 02:13 PM   #18
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Re: New Replacement for PCRIX, PCRDX!!!

Quote:
Originally Posted by wab
What's the difference? They are both commodities with no investment value.
Them are fightin words!

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Re: New Replacement for PCRIX, PCRDX!!!
Old 06-14-2006, 02:16 PM   #19
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Re: New Replacement for PCRIX, PCRDX!!!

Quote:
Originally Posted by wab
What's the difference?* *They are both commodities with no investment value.
Not true. I strongly believe in investing in my stomachs growth.*
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Re: New Replacement for PCRIX, PCRDX!!!
Old 06-14-2006, 02:18 PM   #20
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Re: New Replacement for PCRIX, PCRDX!!!

Quote:
Originally Posted by wab
What's the difference?* *They are both commodities with no investment value.
Eh, I 'm not interested in rehashing this again. Go read the articles or stay in the dark. I can't be bothered to care which.
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