The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Commodities Funds Gain Steam

Firms are launching commodities funds as the sector experiences its first boom period in decades.

Fund firms are joining exchange-traded fund providers in the fray, with launches from Direxion Funds and Morgan Stanley Investment Management. ProFunds has filed for a suite of commodities ETFs it plans to launch in August. So far, 25 commodities ETFs have launched this year, according to Matt Hougan, editor of IndexUniverse.

Commodities funds have experienced $103 million in net flows the past three months and $480 million year-to-date. Investors pulled $1.85 billion from commodities funds in 2007, according to figures from Morningstar. "We have seen a proliferation of these funds. There has been a lot more investor interest and assets flooding into commodities and you see a rush by players to offer a competing product," said Karen Dolan, director of fund analysis at Morningstar.

Direxion Funds last week launched the first long/short commodities fund, the Commodities Trend Strategy Fund, benchmarked to the S&P Commodity Trends Indicator. Direxion has also filed to launch a commodity bear fund, but has no timetable for the launch.

Morgan Stanley launched the Commodities Alpha Fund last month. That fund is benchmarked to the Dow Jones AIG Commodity Index. Morgan Stanley did not return a call for comment.

Commodities have been one of the fastest growing segments of the ETF market this year, and Hougan said he expects that to continue.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree