408Course · Professional

Commodities

The oldest asset class.

The Course

Commodities are the oldest asset class. This course teaches the four supercategories, the vehicles by which exposure is taken, and the arithmetic of roll yield.

You will finish able to judge a commodity fund by its structure before its performance.

Outcomes

01
Distinguish the four commodity supercategories.
02
Understand roll yield.
03
Judge a commodity fund by its structure.

Prerequisites

— 407 — Futures helpful.

Pacing

1 week · ~2 hours.

IModule · ~1 hour.
The taxonomy
Energy, metals, ags, softs.
Energy, metals, ags, softs — the four families and their physical realities.
What You Will Be Able To Do
- — Name the four supercategories.
- — State the primary drivers of each.
- — Distinguish supply-driven from demand-driven cycles.
Why here
The physical layer explains most of the price behavior.
1. 01The four supercategoriesArticle12m
IIModule · ~1 hour.
Getting exposure
The vehicles and their costs.
The three routes — futures-based funds, physical, and equity proxies — deliver different returns.
What You Will Be Able To Do
- — Distinguish the three vehicles.
- — Compute roll cost.
- — Choose the right vehicle for the exposure.
Why here
Vehicle choice often matters more than commodity choice.
1. 01Futures-based vs. physical vs. equity proxiesArticle12m

A Note from the Faculty

Most retail commodity products deliver less than the spot they claim to track. Understand why.