GSG VS USCI

Exchange-Traded Funds (ETFs) have emerged as a powerful investment tool, offering investors diverse exposure to various sectors and asset classes. In this article, we will conduct an in-depth comparison between two notable ETFs: GSG (iShares S&P GSCI Commodity-Indexed Trust) and USCI (United States Commodity Index Fund). We'll explore critical aspects such as ETF tickers, full names, issuers, sectors, top holdings, capitalization, strategy, tracking methods, and exposure.

GSG Vs USCI: Overview

GSG and USCI are two distinct ETFs that provide exposure to the commodities market. While GSG aims to track the S&P GSCI Commodity Index, which includes a broad range of commodities, USCI takes a more active approach by employing a rules-based strategy to select and allocate across various commodities. Understanding the differences in their objectives and strategies is essential for investors seeking exposure to the commodities market.

GSG Vs USCI: Sectors and Top Holdings

GSG's portfolio encompasses a diverse array of commodities, including energy, agriculture, industrial metals, and precious metals. On the other hand, USCI's portfolio covers commodities such as energy, metals, and agriculture but employs a methodology that focuses on factors like backwardation and roll yield. Analyzing the sectors and top holdings helps investors gauge the diversity and potential risks associated with each ETF.

GSG overlap GSG VS USCI

GSG Vs USCI: Capitalization and Strategy

The assets under management (AUM) of GSG and USCI reflect their popularity and investor demand. GSG's strategy is based on replicating the performance of the S&P GSCI Commodity Index, while USCI employs a more active approach, aiming to outperform the SummerHaven Dynamic Commodity Index Total Return. Investors should consider the differences in capitalization and strategy when evaluating these ETFs for their portfolios.

GSG Vs USCI: Tracking and Exposure

GSG tracks the S&P GSCI Commodity Index by investing in a diversified basket of futures contracts on physical commodities. USCI, however, employs a unique methodology that considers factors like the shape of the futures curve and the cost of carry. This active approach aims to optimize returns and minimize the effects of contango and backwardation. Understanding the tracking methods and exposure mechanisms aids investors in making informed decisions.

Conclusion

GSG and USCI present investors with distinctive approaches to accessing the commodities market. Whether you're interested in passive replication of a broad commodity index (GSG) or an active strategy that seeks to enhance returns (USCI), these ETFs offer opportunities for exposure. For deeper insights into the holdings, correlations, overlaps, and more, consider using ETF Insider—an intuitive app that empowers users to explore these financial instruments comprehensively.

Disclaimer: This article is intended for informational purposes only and does not provide investment advisory services. It's essential to conduct thorough research and consult with financial professionals before making investment decisions.

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