Investing in sugar: sweet performance for the SGG ETF

Sugar has been attracting significant attention lately. It has been indeed a sweet commodity to own. The top ETF to use for sugar is SGG.

Performance:

We track its performance live here:

A +117% return o investment since 2009 is quite good.

SGG is an iPath ETF. The ETFs  fees are 0.75%.

SGG invests in the "Sugar Sub-Index" which is designed to be a benchmark for sugar as an asset class. It is composed of the futures contract on sugar that is included in the Commodity Index and is intended to reflect the returns that are potentially available through:


(1) an unleveraged investment in that contract plus
(2) the rate of interest that could be earned on cash collateral invested in specified Treasury Bills.

The Sugar Sub-Index is calculated using the same methodology as the Commodity Index but with reference only to the contract included in the Sugar Sub-Index (which, for purposes of the calculation, has a weighting of 100%). At present, Dow Jones disseminates the level of the Sugar Sub-Index approximately every 15 seconds (assuming the level has changed within such 15-second interval) from 8:00 a.m. to 3:30p.m. New York City time and publishes a daily Index value at approximately 5:00 p.m. New York City time on each DJ-UBS Business Dayon its website, and on Bloomberg under the ticker symbol “DJUBSBTR”.