Wednesday, February 22, 2012

Jim Rogers 'talking his book', but his ETF no chart topper - NASDAQ

Legendary investor Jim Rogers is legendarily short on equities and long on commodities, and the Rogers International Commodity Index is the embodiment of his ideas. Unfortunately, the Rogers International Agriculture Commodity ETF ( RJA , quote ) doesn't quite live up to its billing.


The Index consists of 20 agriculture investments, with the major holdings being wheat ( JJG , quote ), corn ( CORN , quote ) and cotton ( BAL , quote ). These components are pretty stable, and their prices are currently within 1% of where they were a year ago.


Not so RJA. It's down over 21% for the last year, though it is up slightly since the beginning of 2012. Contrast this with the major exchange traded fund for agriculture, PowerShares Agriculture ( DBA , quote ), which is down only 16% over the last year.


When interviewed about the fund by Bloomberg Television in Singapore, Rogers said that a correction in commodities was to be expected.  Hopefully that is now over, and the RJA will be on the way back up in 2012.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


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Jim Rogers

Warren Buffett

Nouriel Roubini