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The Direxion Auspice Broad Commodity Strategy ETF seeks investment results, before fees and expenses, that track the Auspice Broad Commodity Index. There is no guarantee the fund will meet its stated investment objectives.
Overall Morningstar RatingTM ««««
Overall Morningstar RatingTM out of 101 US Fund Commodities Broad Basket funds based on risk adjusted returns as of 03/31/2022†.
Overview
Documents & Downloads
Strategy & Benefits
The Direxion Auspice Broad Commodity Strategy ETF allows investors to take advantage of rising commodity prices, in addition to mitigate risk by going flat (cash) when individual commodities are experiencing downward trends. It seeks to potentially provide commodity investment returns with lower risk characteristics than long-only commodity strategies.
Strategy Description
- A 40 Act, non K-1 generating approach to commodity investing
- Exposure to 12 commodities that can individually be long or flat (if a short signal is triggered the position is moved to cash)
- The ability to make position changes intra-month based on trends
- Month-end review where the position size of each component is modified if volatility exceeds certain predetermined risk levels
- A “smart” contract roll approach designed to select cost effective futures contracts to roll into upon expiration of current contract
Most traditional commodity funds can only benefit if commodity prices rise. However, these long-only commodity strategies have shown to be inconsistent over time because:
- Commodity returns are typically cyclical and sporadic
- Individual commodity sub-sectors tend to perform dissimilarly in different market environments
- Significant draw-downs can be damaging to the long-term performance of a portfolio
Within the inherently volatile commodity markets, a long/flat approach is potentially more adaptive to whip-sawing market conditions.
Fund Details
Component Sectors and Current Positioning
| Metals | Position (Long/Flat) |
| Copper | Long |
| Gold | Long |
| Silver | Long |
| Agriculture | Position (Long/Flat) |
| Corn | Long |
| Cotton | Long |
| Soybeans | Long |
| Sugar | Flat |
| Wheat | Long |
| Energy | Position (Long/Flat) |
| Crude Oil | Long |
| Gasoline | Long |
| Heating Oil | Long |
| Natural Gas | Flat |
All data as of 03/31/2022 and is subject to change at any time and are not recommendations to buy or sell any security. When the positions within the various components are flat, they will be invested in cash and U.S. Treasury Bills. Individual components may vary based on risk levels.
Target Index
The Auspice Broad Commodity Index is a rules-based index that attempts to capture upward trends in the commodity markets while minimizing risk during downtrends by tracking a diversified portfolio of 12 different commodity futures contracts, or “components,” which are soybeans, corn, wheat, cotton, sugar, crude oil, natural gas, gasoline, heating oil, copper, gold and silver. One cannot directly invest in an index.
Index Comparison
The Auspice Broad Commodity ER Index (ABCERI) vs. Long-only Commodity Indexes %
| ABCERI | S&P GSCI | BCOM | DBC CI | |
| Annualized Return1 (%) | 2.77 | -1.96 | -1.04 | 1.34 |
| Annualized Std Dev2 (%) | 9.05 | 21.31 | 14.16 | 17.17 |
| Correlation3 | 1 | 0.61 | 0.72 | 0.70 |
| Max Drawdown4 (%) | -43.08 | -79.62 | -66.09 | -64.99 |
Source: Bloomberg. Index data as of 03/31/2022. This data begins on 10/01/2010, the inception of the Auspice Broad Commodity ER Index. The three indexes above are composite indexes of commodity sector returns representing unmanaged, unleveraged, long-only investment in commodity futures that are broadly diversified across the spectrum of commodities. Index definitions are listed below. Past performance does not guarantee future results. Index returns and correlations are historical and are not representative of any Fund performance. Total returns of the Index include reinvested dividends. One cannot invest directly in an index.
Standard Deviation is a measure of the dispersion of a set of data from its mean.
Correlation is a statistical measure of how two securities move in relation to each other.
Maximum Drawdown is the greatest percent decline from a previous high.
S&P GSCI: The S&P GSCI Excess Return Index is a composite index of commodity sector returns representing an unleveraged, long-only investment in commodity futures that is broadly diversified across the spectrum of commodities.
BCOM: Bloomberg Commodity Excess Return Index is a broadly diversified index that allows investors to track 19 commodity futures through a single, simple measure.
DBC CI: Deutsche Banc Liquid Commodity Optimum Yield Index is an index composed of futures contracts on 14 of the most heavily-traded and important physical commodities in the world.
Calendar Year Total Returns Since Inception of the Auspice Broad Commodity ER Index Compared to Other Commodity Indexes %
| ABCERI | S&P GSCI | BCOM | DBC CI | |
| 2011 | 0.54 | -1.24 | -13.40 | -2.45 |
| 2012 | -1.02 | -0.01 | -1.06 | 1.12 |
| 2013 | -3.27 | -1.28 | -9.52 | -9.02 |
| 2014 | -8.97 | -33.08 | -17.01 | -25.94 |
| 2015 | -13.45 | -32.90 | -24.66 | -26.73 |
| 2016 | 8.55 | 11.00 | 11.77 | 8.98 |
| 2017 | -7.92 | 4.77 | 1.70 | 7.81 |
| 2018 | -0.98 | -15.51 | -12.99 | -12.91 |
| 2019 | -3.06 | 15.17 | 5.44 | 10.79 |
| 2020 | 5.93 | -24.02 | -3.12 | -7.87 |
| 2021 | 28.84 | 40.29 | 27.05 | 42.53 |
| Total Return | 36.94 | -20.36 | -11.32 | 16.61 |
| Max Drawdown | -43.08 | -79.62 | -66.09 | -64.99 |
| Annualized Std Deviation | 9.05 | 21.31 | 14.16 | 17.17 |
| Annualized Return | 2.77 | -1.96 | -1.04 | 1.34 |
Source: Bloomberg. All index information is from 10/1/2010 – 03/31/2022.
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Pricing & Performance
NAV and Market Price information as of —. Line chart shows pricing trend over the last 30 days. The Primary Listing Exchange is the NYSE Arca, Inc.