GSG VS GCC
4 min read
By Ron Koren, ETF Insider

GSG VS GCC

Exchange-Traded Funds (ETFs) have redefined investment strategies by providing diversified exposure across various sectors and asset classes. In this article, we will conduct an in-depth comparison between two prominent ETFs: GSG (iShares S&P GSCI Commodity-Indexed Trust) and GCC (WisdomTree Continuous Commodity Index Fund). We'll delve into key aspects such as ETF tickers, full names, issuers, sectors, top holdings, capitalization, strategy, tracking, and exposure.

GSG Vs GCC: Overview

GSG and GCC are distinct ETFs that offer exposure to the commodities market, albeit with varying approaches. GSG tracks the S&P GSCI Commodity Index, providing a broad representation of the commodities sector. On the other hand, GCC follows the WisdomTree Continuous Commodity Index, which focuses on a diversified basket of commodity futures contracts. These differences in methodology and exposure will be explored further in subsequent sections.

GSG Vs GCC: Sectors and Top Holdings

The GSG ETF encompasses a range of commodities, including energy, agriculture, and metals. Its top holdings include oil, natural gas, and gold. In contrast, GCC's portfolio is diversified across 17 different commodities, including energy, metals, and agriculture. Understanding the sectors and top holdings of these ETFs aids investors in evaluating their alignment with investment goals and risk tolerance.

GSG  overlap GSG VS GCCGSG overlap GSG VS GCC

GSG Vs GCC: Capitalization and Strategy

GSG boasts a substantial Asset Under Management (AUM), signifying its popularity among investors seeking exposure to commodities. Its strategy involves tracking the S&P GSCI Commodity Index, which reflects the performance of various commodities. GCC's approach is centered around the WisdomTree Continuous Commodity Index, which employs a yield-enhanced strategy by focusing on contracts with the highest yield-to-maturity. Divergent capitalizations and strategies introduce distinct potential returns and risks that investors should carefully consider.

GSG Vs GCC: Tracking and Exposure

GSG's objective is to mirror the performance of the S&P GSCI Commodity Index, which is a widely followed benchmark for commodities. On the other hand, GCC aims to track the WisdomTree Continuous Commodity Index, which seeks to enhance returns through yield-focused selection. GSG's tracking is based on the actual futures contracts of commodities in the index, while GCC's approach emphasizes yield. Understanding these tracking methods and exposures is crucial for investors in selecting an ETF aligned with their preferences.

Conclusion

GSG and GCC represent two distinct approaches to investing in the commodities market. Depending on an investor's objectives, risk appetite, and desired exposure, one ETF may be more suitable than the other. For those interested in delving deeper into holdings, correlations, overlaps, and other insights, the ETF Insider app stands as an invaluable tool. With its user-friendly interface, this app offers a wealth of information on these and other financial instruments.

Disclaimer: This article is for informational purposes only and does not provide any investment advisory services.

Sources:

GSG quote and analysis

Discover the top holdings, correlations, and overlaps of ETFs using our visualization tool.
Our app allows you to build and track your portfolio.
To learn more about the GSG iShares S&P GSCI Commodity Indexed Trust, access our dedicated page now.

Get started

FAQ

  • Why is GSG better than GCC?

    GSG may be considered better than GCC for some investors due to its specific focus, offering diversification.

  • Does GCC beat GSG?

    GCC's performance relative to GSG will vary over time, depending on market conditions.

  • Should I invest in GSG or GCC?

    The choice between GSG and GCC should align with your investment goals, risk tolerance, and desired exposure.

  • Are GSG and GCC good investments?

    Both GSG and GCC can be suitable investments depending on individual investment strategies, goals, and risk profiles.

  • What is the correlation between GSG and GCC?

    The correlation between GSG and GCC can vary over time, reflecting differences in performance.