Commodity Fund Vs Energy Fund

[Spanky]

Any opinion whether to choose (PIMCO's) PCRDX or Vanguard Energy Viper?
Since the Vanguard fund is cheaper to own, my inclination is to select that fund.

 

[wildcat]

Energy funds are well full of energy. PCRIX is no load and exp ratio <1 and offers broad exposure to all commodities (it is a bit weighted towards energy but the Energy Funds do not includes cocoa, sugar, etc.)

Energy Fund to me is more of a play on stocks than commodities. They have a higher chance of moving in the same direction as stocks than actual commodities which should move opposite the market. PCRIX seemed to offer more bang for my buck in terms of diversification. It has been fairly consistent in terms of market up fund down, market down fund up. So far I am pleased.

 

[Spanky]

PCRIX is no load and exp ratio <1 and offers broad exposure to all commodities (it is a bit weighted towards energy but the Energy Funds do not includes cocoa, sugar, etc.)

It says that initial investment required is $5M??

 

[sailor]

It says that initial investment required is $5M??

Spanky,
I was in the same boat a week ago - was looking how the heck people can invest 10% of their NW in PCRIX if the minimum was $5M or even $1M.
But:
TD Waterhouse has $1k minimum for PCRIX
Vanguard has $5k minimum ($2.5K for IRA)

Sailor,
whose wife is changing jobs on 5/30, so we plan to park some money in PCRIX after rolling over her 403(b).

 

[cute fuzzy bunny]

Vanguard allows you to invest in pcrix with a small amount...I think its 2500 or 5000?

The biggest differences between pcrix and an energy fund are that pcrix is far more diverse than simple energy, it leverages tips to buy the commodities contracts so you get the return from tips as well as the return from the commodities, and its a lot less tax efficient.

Very different beasts.

 

[wildcat]

Vanguard allows you to invest in pcrix with a small amount...I think its 2500 or 5000

That was how I got in & turnover is crazy so it is prb best for non-tax account.

 

[cute fuzzy bunny]

It can be a lot of fun if you have a lot of carryover capital losses to use up...

(cough)

I havent bought any yet. Didnt look like a bargain. Seems to be dipping a little now. Might snoovel up $50k or so just to say I did it.

 

[BUM]

Bought pcrix in Jan. NAV is down. Time to buy more. Divvies are tasty.

BUM