Commodities again. It is very important to examine the construction of the ETF or fund to determine if it is a suitable investment and if it matches the areas of the market your firm wants to engage.
Here are three funds PCRIX(PIMCO Real Return), DBC(Deutsche Bank Optimal Yield) and Greenahven(GCC). The 1yr return through May 27th is approximately: GCC- negative 11.49% DBC- negative 2.66% PCRIX-negative 7.87%
While a negative return is acceptable if you are comfortable with the rationale and are confident forward looking, this shows how initial due diligence is key to performance.
Tom Koehler, CFA