Direxion Auspice Broad Price, Forecast, Insider, Ratings, Fundamentals & Signals

Concerns about inflation are top of mind again, with consumer prices and producer prices rising higher last week. This impacted the bond market as well as commodity prices.

Direxion Auspice Broad Commodity Strategy ETF is a commodities-focused exchange-traded fund that invests in a basket of 12 commodities futures contracts. The fund aims to outperform the Auspice Broad Commodity Index and reduces volatility by exiting positions when proprietary signals indicate a bear market. COM has low volatility compared to its peers, offers diversification benefits, and has shown strong performance during commodity up-cycles.

Commodities entered 2023 behind a strong performance in 2022. For investors revisiting their portfolios ahead of 2024, it may be worth assessing the commodities outlook.

The S&P 500 has rallied in recent days and was up close to 20% for the year. However, heading into 2024, many advisors are exploring a range of investment ideas that offer exposure beyond the stock market.

A generational demand shock and global supply constraints have the commodity sector poised for a shift unseen since the 1970 supercycle. Direxion Auspice Broad Commodity Strategy ETF has been a top performer, producing more return relative to its risk, making it an attractive solution for investors given the high level of volatility and drawdown in commodities. COM historically requires less than 10% of capital to attain the commodity futures positions, with >90% invested in cash. Today, with cash yielding ~5%, that is a significant tailwind.

Unlike traditional commodity ETFs COM tries to mitigate downside risk (by moving to cash if deemed necessary). As a result, it is currently outperforming other commodity ETFs.

COM is an excellent choice for investors looking for low-volatility exposure to commodities. The fund's risk-adjusted returns and low correlation to the market make it a superior hedge within the context of a diversified portfolio.

I've analyzed static commodity exchange-traded funds before. But now, here's a very interesting commodity ETF with a dynamically changing bias on various commodities. Currently, Direxion Auspice Broad Commodity Strategy ETF has net long exposure to gold, soybeans, sugar, copper, and silver.

Commodity prices have increased all year. Commodity ETFs have benefitted, significantly outperforming YTD.

The current commodity marketplace is characterized by rapidly changing dynamics between demand and supply, persistently high inflation as well as heightened recession risks. In these circumstances, choosing an ETF that offers better risk-reward returns becomes necessary, while obtaining regular distributions.