2016’s Best-Performing Commodity ETFs Could See Gains Evaporate Soon

With great gains come great risk, and a number of high-flying commodity ETFs are now facing big potential pullbacks, as the odds of an interest rate hike rise.

As a result, investors sitting on big gains could very well see them go up in smoke soon. Let’s take a look at some of the most at-risk precious metal and commodity ETFs.

Best Performing Commodity ETFs: Year-to-Date Gains

Sym ETF Name Price YTD Chg AUM
GLD SPDR Gold Trust 126 24.19% 40545651200
GDX Market Vectors Gold Miners ETF 27.07 97.30% 9946520800
IAU iShares Gold Trust 12.73 24.44% 9549408800
SLV iShares Silver Trust 17.69 34.12% 6600170400
GDXJ Market Vectors Junior Gold Miners Fund 44.98 134.15% 4496446800
GUNR FlexShares Morningstar Global Upstream Natural Resources Index ETF Index Fund 27.02 22.77% 2601369000
DBC PowerShares DB Commodity Index Tracking Fund 14.81 10.85% 2367304000

Prices and returns current as of Aug 29, 2016. YTD Change represents total return, including dividends.

Clearly, the GDXJ and GDX are particularly vulnerable here. Both gold miner-focused ETFs have been on incredible runs in 2016, and despite cooling off this month, they lack any major technical price support to help prevent further pullbacks.

With the Federal Reserve considering a rate hike as early as September, commodities could face big pressure as we progress through the fall. That’s because higher rates would bolster the U.S. dollar, which in turn lowers the value of commodities in U.S.-dollar terms.

For more news and analysis about this topic, check out our Commodity and Precious Metals news streams.

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