Pimco Commodityrealreturn Strategy Fund Institutional Class (PCRIX)


The Pimco Commodity Realreturn Strategy Fund Institutional Class seeks total return by investing primarily in a diversified portfolio of commodities and commodity-linked derivatives whose values are based on commodities, currencies, or other factors derived from commodities.

More About Pimco Commodityrealreturn Strategy Fund Institutional Class (PCRIX)

Continue reading to learn more about: What is a commodity strategy fund?
Do commodities pay dividends?
Does Vanguard have a commodity fund?
Why should you invest in commodities?
How do I invest in a commodity fund?


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What is a commodity strategy fund?


A commodity-strategy fund is a portfolio of individual commodities (including metals, energy, agricultural and livestock products) similar to a mutual fund for stocks. Since traditional long-only commodity funds can generate positive returns only when the prices of their underlying commodities rise, we believe it is critical to have a flexible approach and the ability to short in an investment process that seeks to generate consistent risk-adjusted returns regardless of market direction.


 
 

Do commodities pay dividends?


As the first fund in its category, PIMCO has proven that commodities can pay dividends by strategically harvesting income in an asset class that can also protect against rising inflation, currency depreciation, and declining purchasing power. 

The Trust will invest at least 65% of its total assets in commodity-linked derivative contracts, which in turn reference a broad basket of commodity futures contracts and physically backed instruments. These contracts provide exposure to a diversified portfolio of commodities across energy, precious metals, and base metals, including oil, gasoline, silver, gold, aluminum, and more.

 

Does Vanguard have a commodity fund?

The Vanguard Fund seeks to achieve total returns through a combination of interest income and capital appreciation. Consistent with the fund's objective, at least 80% of its net assets (plus any borrowings for investment purposes) will be invested in commodities. The Fund may invest in physical commodities directly or in government securities and derivatives (including options, futures, forward contracts, and swaps) that reference one or more commodity indices. 

The Fund may seek exposure to the commodities market by investing directly in the following types of instruments: 


(1) commodity-linked derivative instruments, such as commodity futures, forwards, options on futures, and other derivatives, such as swaps referencing a commodity index or a single commodity;

(2) debt securities linked to commodities;

(3) equity securities of companies primarily engaged in commodity trading, transportation, or production; and

(4) paying a maximum annual fee of 0.75%

 
  • Why should you invest in commodities?

    PIMCO believes that commodities are an important way to diversify your portfolio and can protect against unexpected inflation. Investing in a commodity real return strategy fund can provide investors the benefits of commodities while minimizing the potential for negative performance over time associated with actively managed commodity futures trading.
  • How do I invest in a commodity fund?

    Investing in a commodity fund is an easy and attractive way to capitalize on the long-term growth in energy and natural resources. This fund allows investors to gain access to a selection of the most important commodities in the world through a single fund, eliminating the need to make their own selections.