Commodities

Role in a portfolio
Commodities as an asset class do not generate a real return.

Open-Ended Mutual Funds

 * PIMCO CommodityRealReturn Strategy Fund Institutional (PCRIX) is an open-ended mutual fund which tracks Dow Jones AIG Commodity Index Total Return with collateral in index-indexed bonds. Expense Ratio 0.79%. Available at Vanguard Brokerage Service for $25,000 initial investment and a transaction fee.

ETFs

 * PowerShares DB Commodity Index Tracking Fund (DBC) is an Exchange Traded Fund which tracks the Deutsche Bank Liquid Commodity Index - Optimum Yield Excess Return. The Index is a rules-based index composed of futures contracts on six of the most heavily-traded and important physical commodities in the world - crude oil, heating oil, gold, aluminum, corn and wheat. Expense Ratio 0.83%.
 * iShares S&P GSCI Commodity-Indexed Trust (GSG) is an Exchange Traded Fund which tracks the S&P GSCI Total Return Index. Expense Ratio 0.75%.

ETNs

 * iPath Dow Jones-AIG Commodity Index Total Return ETN (DJP) is an Exchange Traded Note which tracks Dow Jones-AIG Commodity Index Total Return. The note is issued by Barclays Bank PLC. Expense Ratio 0.75%.
 * ELEMENTS RICI-Total Return (RJI) is an Exchange Traded Note which tracks the Rogers International Commodity Index - Total Return. The index is composed of futures contracts of 36 different commodities and is weighted based on global commodity consumption. The note is issued by the Swedish Export Credit Corporation. Expense Ratio 0.75%.

Articles

 * On Stuff by William J. Bernstein, 09/2006
 * Commodities: Boom or Bust? by Jeremy Siegel, Ph.D, 04/19/2006
 * Robert Greer Discusses the Benefits of Commodity Investing by Robert J. Greer, 03/01/2004
 * What the Price of Gold Is Telling Us by Congressman Ron Paul, 04/25/2006
 * Going Long on Commodities: Six ways to invest in commodities by Will Acworth, 05/15/2005
 * A Rediscovered Asset Class: Commodity Futures by raddr, 02/04/2006
 * Commodities As An Asset Class by Frank Armstrong, CFP, AIF, 07/15/2004
 * Not All Commodity Indexes Are Created Equal (Part One of a Two Part Series) by Richard Feldman, CFP, MBA, AIF, 06/02/2006
 * Are Commodities Futures Too Risky for Your Portfolio? Hogwash! by Knowledge@Wharton, 04/05/2006
 * Contango, backwardation, and all that good stuff by Prof. James Hamilton, 06/12/2005
 * CRB Indexes by CRB

Institutional Papers

 * Commodities: The Building Blocks of Forward Returns by Vanguard Investment Counseling & Research, 2008
 * Investing in Commodities by TIAA-CREF’s Investment Strategy and Client Solutions Group, 07/07/2008
 * Strategic Asset Allocation and Commodities by Ibbotson, Thomas M. Idzorek, CFA May 2006
 * Wilshire Research Commodity Index Comparison by Thomas E. Toth, Associate, 04/05/2005
 * Understanding alternative investments: The role of commodities in a portfolio by Kimberly A. Stockton, Vanguard Investment Counseling & Research, (08/02/2007)
 * Commodity futures in portfolios by Truman A. Clark, December 2004 (broken, requires sign in)