SDCI
USCF SummerHaven Dynamic Commodity Strategy No K-1
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You are not diversified. The ideal portfolio from a risk perspective is to have multiple sources of *uncorrelated* returns. Dalio says 15-20 sources is the "holy grail". Right now, you have two funds that are *highly correlated* (0.774 back to '99) and of the same asset class. This means they will tend to rise and fall simultaneously. To avoid big drawdowns, consider incorporating diversifying factors and other asset classes. A portfolio of equal parts: SPMO, FRDM, AVDV, SDCI, GLD, KMLM, DBMF, IALT, BNDW, ILS Had comparable returns to your current portfolio over the last 3 years, with only 1/3 the max drawdown. Link: https://testfol.io/?s=23ilxIx4YVg It's made up of US momentum, emerging markets, international small cap value, commodities basket, gold, managed futures trend following, managed futures "index", alts, global bonds, and catastrophe bonds.
Just FYI this is structured as a partnership and you will wind up with a k-1 for owning it. SDCI from the same company is a broad commodity futures ETF that doesn't result in a K-1, as noted in the title of the page for the fund: https://www.uscfinvestments.com/sdci
There are a number of ETFs that work. There are broad based ones that will give you more diversification (e.g., SDCI) and there are specific ones for certain commodities (for example, if you just wanted gold, GLD is a solid ETF)
Didn't downvote, but genuine question: if you believe the dollar is going to be worthless within say, 6-12 months, why not have a portfolio that's basically 2x gold miners etf, 2x gold etf, 2x bitcoin etf, commodity futures etf (SDCI?), short dollar, short treasuries, etc? Not something I'd do (I very much see the case for medium/long-term dollar decline, but not imminent hyperinflation) but if that's how you feel there's certainly plenty of options to build a portfolio around that view.
FXE is up 14% YTD, but barely up over the last 5 and down since it started. Maybe one can pick the best currency with what's currentlyg going on, but I think beyond the short-term (and I do think that inflation protection should be a portion of people's portfolio looking over the next 5+ years), I'd rather something like SDCI or whatever gold etf.
IAU or IUAM (gold) and SDCI (commodity ETF). Personally, I aim for an equal weight/sector neutral portfolio so ~1/3 defense, ~1/3 consumer cyclical (banks/financial) & ~1/3 sensitive (tech/industrial/etc). Markets change, but don’t reinvent the wheel by switching from one flavor of the week to the next. Sector neutral can solve for that
I am confusion. How the hell do commodity funds like SDCI have such high dividend yield? Is it some kinda scam
If you anticipate beta/volatility to continue to be ridiculous, something like SVOL could be good. Otherwise commodities futures ETFs could be worth looking at; I have a bunch of SDCI and am quite happy with how it's been performing, but there are certainly others. I'm pretty sure most of its growth this year has been from energy, but diversification can't hurt, long-term.
I feel like someone made a DD about SDCI but made a typo when posting and now all these SDC heads are balls deep in a shit ass company whose 1 year chart is laughable