PortfolioAI Top Two Commodities System vs. IAU, DBC & SPY: 1-Year Performance Analysis
Topic: Stock Trading
In the challenging and often volatile commodity markets, finding strategies that consistently deliver strong returns is key. At PortfolioAI, our Top Two Commodities system aims to provide a dynamic and focused approach by investing only in the two best-performing commodities at a time. To benchmark its performance, we compared the system’s 1-year returns against major commodity ETFs and the broader equity market.
Performance Snapshot
| Symbol / System | Start Price / Equity | End Price / Equity | 1-Year Return (%) |
|---|---|---|---|
| IAU (Gold ETF) | $44.03 | $63.80 | +44.93% |
| DBC (Broad Commodities ETF) | $23.34 | $22.60 | -3.16% |
| SPY (Equity Market Proxy) | $548.49 | $602.68 | +9.87% |
| PortfolioAI Top Two Commodities System | $34,032 | $42,486 | +24.88% |
Insights & Takeaways
Over the past year, gold (IAU) stood out with a remarkable 45%+ gain, highlighting its enduring role as a haven asset during turbulent times. Meanwhile, the broader commodity ETF (DBC) struggled, finishing with a modest loss near 3%. This uneven performance reflects the commodity landscape’s complexity where energy and agricultural sectors faced notable headwinds.
In contrast, the S&P 500 proxy (SPY) delivered steady gains close to 10%, mirroring continued confidence in large-cap U.S. equities. Worth noting is how our Top Two Commodities system managed to outpace the broad commodity ETF by a wide margin, delivering a healthy 24.9% return. By focusing selectively on the strongest commodities, the system captures upside opportunities while avoiding broader sector weakness.
Why Choose a Targeted Commodities Strategy?
Broad commodity ETFs can dilute performance since they include underperforming sectors alongside winners. The PortfolioAI Top Two Commodities system takes a curated approach, adapting to market dynamics in real-time to target momentum leaders. This agility can be a powerful tool for investors seeking better risk-adjusted returns in the commodity space.
FAQ
How does the Top Two Commodities system compare to traditional commodity ETFs like IAU and DBC?
Unlike broad commodity ETFs that provide wide exposure, the Top Two Commodities system selectively targets high-performing commodities, leading to stronger returns as demonstrated by its 24.9% one-year gain compared to IAU's 44.9% and DBC's -3.2%.
Why did DBC have a negative return while PortfolioAI's system showed strong growth?
DBC covers a broad basket of commodities, including sectors like energy and agriculture that faced significant headwinds over the past year. The PortfolioAI system's targeted approach avoids underperforming sectors, enabling better performance.
How frequently does the Top Two Commodities system adjust its holdings?
The system adjusts its commodity positions based on ongoing performance data, ensuring that it remains invested in the top two commodities showing the strongest momentum at any given time.
What is the PortfolioAI Top Two Commodities system?
It is a dynamic trading strategy that invests in the two best-performing commodities at any given time, aiming to maximize returns by focusing on momentum leaders in the commodities market.