Jim Rogers' Commodity Fund: A Guide To Investing

The Rogers International Commodity Index (RICI) is a broad index of commodity futures designed by Jim Rogers in 1996/1997. The index is divided into three sub-indices, reflecting the three sub-segments of the RICI: RICI Agriculture, RICI Energy, and RICI Metals. The index tracks 38 commodity futures contracts from 13 international exchanges, ranging from agricultural to energy and metal products. The list of commodities is subject to change by the RICI Committee, which selects commodities based on their significance in worldwide consumption and liquidity. The RICI is known for its stability and transparency, making it a reliable benchmark for investors seeking consistent exposure to commodities through a broad-based international vehicle.

The Rogers International Commodity Index

The index was designed to meet the need for consistent investing in commodities through an international vehicle. It tracks 38 commodity futures contracts from 13 international exchanges. The list of commodities is subject to change by the RICI Committee. A commodity is considered for inclusion in the index if it plays a significant role in worldwide consumption in both developed and developing countries. If a commodity is traded on multiple international exchanges, the most liquid contract is selected for inclusion in the index based on volume and open interest. Liquidity is also a factor in determining the weights of commodities in the index.

The RICI is divided into three sub-indices: RICI Agriculture, RICI Energy, and RICI Metals. According to the RICI Handbook, the initial contributions of these sub-indices to the main index were as follows: Agriculture - 34.90%, Energy - 44.00%, and Metals - 21.10%. Each commodity within the index is rebalanced at the start of each month towards initial weights determined annually by the RICI Committee. The RICI has been characterised by its stability, consistency, and transparency, offering investors a clear understanding of their holdings in the long term.

Jim Rogers International Commodity Index UCITS ETF

The Rogers International Commodity Index UCITS ETF is a fund that tracks the performance of the Jim Rogers International Commodity Index. The index is a US dollar-denominated total return index representing a basket of commodities consumed in the global economy, including agricultural, energy, and metal products. The ETF provides exposure to 38 different exchange-traded commodities.

The Rogers International Commodity Index UCITS ETF is a synthetic (swap-based) fund with a total expense ratio (TER) of 0.60% per annum. It was launched on May 8, 2006, and is domiciled in Luxembourg. The fund is managed by FundRock Management Company S.A., with China Post Global (UK) Limited as the distributor and CACEIS Investor Services Bank S.A. as the custodian and administrator.

The ETF is authorised for distribution in Germany, Austria, Italy, the Netherlands, the UK, Switzerland, and Luxembourg. The performance of the fund is sourced from Bloomberg and China Post Global (UK) Limited. It is important to note that past performance is not a reliable indicator of future returns. The value of investments may fluctuate due to currency exchange rates and other factors.

Before investing in the Rogers International Commodity Index UCITS ETF, prospective investors are advised to read the prospectus of Market Access and the Key Investor Information Document (KIID) of the ETF. There are risks associated with investing in ETFs, including the potential default or failure of the swap counterparty to pay the ETF, which could adversely affect returns.

RICI Agriculture, RICI Energy and RICI Metals

The Rogers International Commodity Index (RICI) is a broad index of commodity futures designed by Jim Rogers in 1996/1997. The first fund tracking the index, consisting of 38 commodity futures contracts, began on July 31, 1998. The index is divided into three sub-indices, which reflect the three sub-segments of the RICI: RICI Agriculture, RICI Energy, and RICI Metals.

The RICI Agriculture sub-index contributes 34.90% to the main index and covers commodities that play a significant role in worldwide consumption. The RICI Committee determines the commodities included in the index, with the most liquid contracts selected for inclusion. The RICI Energy sub-index contributes 44.00% to the main index and is also based on the most actively traded energy commodities. The RICI Metals sub-index contributes 21.10% to the main index and covers metals commodities.

The weights of individual commodities in the RICI are determined by a committee headed by Rogers, based on long-term trends in global consumption while accounting for futures liquidity. Each commodity is rebalanced at the start of each month towards initial weights determined annually by the RICI Committee. The RICI has had very few changes since its inception, making it one of the most stable, consistent, and transparent commodity indexes.

The RICI provides investors with broad exposure to a basket of commodities consumed in the global economy, ranging from agricultural to energy and metal products. It offers a comprehensive coverage of the true global commodity universe, including commodities that were previously underrepresented in other indices, such as rice and rubber.

Elements exchange-traded notes

ETNs are different from Exchange-Traded Funds (ETFs). ETFs own the securities in the index they track, whereas ETNs do not provide investors with ownership of the securities. Instead, ETN investors receive the return that the index produces. As a result, ETNs are similar to debt securities, and investors must trust that the issuer will make good on the return based on the underlying index.

The Rogers International Commodity Index (RICI) is a broad index of commodity futures designed by Jim Rogers in 1996/1997. The index tracks 38 commodity futures contracts from 13 international exchanges. The list of commodities is subject to change by the RICI Committee, which selects commodities that play a significant role in worldwide consumption. The index is divided into three sub-indices: RICI Agriculture, RICI Energy, and RICI Metals, with the sub-indices contributing to the main index as follows: Agriculture (34.90%), Energy (44.00%), and Metals (21.10%).

The RICI provides a consistent and stable vehicle for investing in commodities, with very few changes since its inception. When investing in the RICI, investors know what they will own in the future, unlike other commodity indexes that change frequently. The index calculation methodology is reviewed annually by the index committee and may be amended. The RICI website is currently inactive, but the index is published by Beeland Interests, Inc.

Market Access Rogers International Commodity UCITS ETF

The Market Access Rogers International Commodity UCITS ETF is an Exchange-Traded Fund (ETF) that offers investors access to one of the most diversified commodity benchmark indices, the Rogers International Commodity Index. This index was designed by Jim Rogers in 1996/1997 and tracks 38 commodity futures contracts from 13 international exchanges. The ETF was launched on May 8, 2006, and is domiciled in Luxembourg. With assets under management of 57 million Euros, it is considered a small ETF.

The Market Access Rogers International Commodity UCITS ETF seeks to replicate the performance of the underlying Rogers International Commodity Index, which is a US dollar-denominated total return index. The index represents the value of a basket of commodities consumed in the global economy, including agricultural, energy, and metal products. It provides exposure to 38 different exchange-traded commodities.

The ETF's total expense ratio (TER) is 0.60% per annum. It is important to note that the performance of the ETF may differ from the index due to various factors, including changes in foreign exchange rates and intermediary fees when buying and selling ETF shares on a secondary market.

The ETF is authorised for distribution in Germany, Austria, Italy, the Netherlands, the UK, Switzerland, and Luxembourg. The prospectus of Market Access and the Key Investor Information Document (KIID) should be carefully reviewed before investing in this ETF.

The Market Access Rogers International Commodity UCITS ETF offers investors a way to gain exposure to a broad range of commodities through a single investment vehicle. By tracking the Rogers International Commodity Index, the ETF provides diversification across different commodity sectors and international exchanges.

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