SunAndStorm
Sep 25, 11:51 PM
$DBMF and
$HGER I've been working on ways to buy commodities. Bought equal amounts of each of these two ETFs today just before the close. First of multiple buys if commodities keep rising. I will be risk managing these two positions from month to month barring big increases in volatility...
HGER is focused on commodities. DBMF is a hedge on more than just commodities (equities, gold, commodities, currency, bonds etc.) so it could be a BUY when HGER is a SELL.
Both make some cash from holding T-bills as collateral. Neither has a K-1, but both do distribute long and short term gains at Section 1256 tax rates (60% LT gains and 40% ST Gains) at year end, as well as interest income. That's why your gains will be better protected inside an IRA.
Generally if commodities are downtrending, HGER wil be a SELL and DBMF might still be a BUY. HGER relies on a strategy that has a much longer backtest history than the ETF.
If President Trump ends the war with Iran suddenly, both could drop. That's the risk, and the lack of an end of the war is another sort of risk...
Do your own research on these, and if you come up with a better pair I'd love to hear about them... ;)
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