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Re: wow_happens28 post# 2032

Friday, 06/02/2023 9:00:09 PM

Friday, June 02, 2023 9:00:09 PM

Post# of 2588
With DBA having all those agro futures, I wonder how that may affect the daily volume figures and other parameters, especially when the various futures contracts expire and have to be rolled over into the new contract, etc? Another question is whether DBA experiences the erosion problem over time seen in some other unorthodox ETFs and ETNs. The relentless 10 year decline of DBA from 2011-2021 looks eerily like what is seen with some of those ETFs with built in 'erosion' problems (for example the 2x, 3x enhanced type ETFs).

That said, the DBA chart doesn't look too bad lately. It had that big 2020-22 runup and is now in a sideways holding pattern. I don't have much/any experience with how commodities futures behave, but here's an article on DBA, albeit somewhat dated (see next post).

Btw, I see that DBA's futures contracts trade on the CME exchange, and when assembling my short-lived portfolio of individual stocks earlier this year, I was considering the CME itself as an investment. It has a pretty nice long term chart, but I went with some other exchange related stocks with somewhat better charts (NDAQ, ICE), in addition to some financial data related plays - FDS, MCO, MSCI, SPGI (see below). Those have been some great long term stocks (Buffett has some MCO).

So instead of owning what is traded on the exchanges, an alternate strategy is to own the exchanges themselves, as well as the suppliers of data and info used by investment firms. So a variation on the 'picks + shovels' approach to investing :o)


Financial Exchanges -

Intercontinental Exchange Group (ICE)
Nasdaq OMX Group (NDAQ)

Financial Data -

FactSet Research Systems (FDS)
Moodys Corp (MCO
MSCI Inc (MSCI)
S+P Global (SPGI)


https://investorshub.advfn.com/Elite-Stocks-38031

(listed under 'Financial' sector)




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