RGRC (Rogers enhanced commodity index) [ETN]

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RGRC (Rogers enhanced commodity index) [ETN]

Postby nydad » Fri Feb 08, 2013 4:52 pm

I know that ETNs are generally not liked here, but just wondering for those of you that are
a) willing to brave the credit risk
b) have a commodities holding

Have you looked at the new Rogers enhanced commodity ETNs ,such as RGRC?

http://investwithanedge.com/rbs-rolls-o ... odity-etns

I currently have a holding of RJI (rogers commodity ETN), and am looking at RGRC as a potential replacement. However, it has a few strikes against it:
1) it is a 20bp more expensive
2) I'm less sure on the credit risk of Royal Bank of Scotland vs. the Swedish export credit corp (which issues RJI)
3) currently low volume and market cap ($4M for now)

However, I'm intrigued by the different index methodology employed which uses more flexible term contracts, and which seems to have improved return (over past 5 years). But on balance, it still seems like a pass...
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Re: RGRC (Rogers enhanced commodity index)

Postby LadyGeek » Fri Feb 08, 2013 5:17 pm

The wiki can explain why ETNs are not liked here: Exchange traded note (Not recommended for new investors)

- SEC filing: Prospectus, September 28, 2012

- PRICING SUPPLEMENT to Prospectus
To some, the glass is half full. To others, the glass is half empty. To an engineer, it's twice the size it needs to be.
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