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Daily Price as of 10/21/19

$4.45 $-0.01 / -0.2%

Class A Details: CMCAX

12/31/10 1.39%/0.95%

Latest Commentary

In many ways the first quarter of 2019 was a mirror image of the fourth quarter of 2018. With the benefit of hindsight, most markets were pricing in the worst case outcomes on several macro-economic issues with which investors have been concerned. Late last year, investors focused on global trade war risks, tightening U.S. monetary policy, slowing global growth, particularly in China, and Brexit gridlock in the U.K. During the first quarter, the U.S. Federal Reserve (Fed) shifted policy direction by announcing a pause/end to U.S. rate hikes and the end of quantitative tightening (QT) later this year. Trade talks with China are moving forward and appear to be heading for a market-positive settlement. China’s monetary easing and fiscal policy support over the last nine months appear to have stabilized its economy, leading to an improvement in investors’ outlook for global growth. Unfortunately, Brexit remains unresolved and could derail markets during the second quarter.

Commodities continue to look well balanced as the supply outlook continues to tighten, particularly in the energy and industrial metals markets. The U.S. dollar remains strong despite the clear shift in the Fed’s policy and the growing U.S. trade and fiscal deficits. Brexit fears appear to be supporting the U.S. dollar, which continues to be a headwind for both emerging markets’ growth expectations and commodity demand.

Commodity Sector Review

The UBS Bloomberg Constant Maturity Commodity Index (CMCI) finished the first quarter up 9.2%, led by strong performance from the Energy sector and the Industrial metals sector. The Energy sector rallied 20% in Q1, with WTI up 24%, Unleaded Gas up 23%, and Brent Crude Oil up 20%. Natural Gas only rose 2% for CMCI but that was much better than The Bloomberg Commodity Index (BCOM), which experienced a fall of 8% for their Natural Gas exposure. 

CMCI’s roll methodology, its longer duration curve exposure, and monthly rebalancing all contributed to that relative outperformance of BCOM. By late last year, the CMCI Energy sector had become very oversold and much of this year’s rebound is simply correcting the extreme investor short positioning from last year.

The Industrial Metals sector rallied 10%, led by a 20% rise in both Nickel and Zinc. Copper rose about 10%. Progress during the quarter on resolving the U.S./China trade dispute supported prices. The Livestock sector rose 5%, with gains in both Cattle and Lean Hogs. Lean Hogs rose 8% as China’s hog industry was struck by Swine Flu. The Precious Metals sector was flat as small gains in Gold were offset by a fall in Silver prices. The Agriculture sector fell 2% and continues to be pressured by oversupply related to excellent growing conditions and the strong yields of the last few years. Even the resumption of China’s purchases of U.S. Soy Beans and Corn failed to move prices higher.

Source: Bloomberg

View CMCI Performance Table

Methodology of the Fund's Underlying Index: CMCI

Methodology of the Fund's Underlying Index: CMCI

UBS Bloomberg CMCI Highlights

  • Diversified across 29 commodities and five maturities

  • Potential for higher risk-adjusted returns than traditional commodity indices

  • Constant maturity approach: daily rolling of a small proportion of underlying futures

  • Monthly rebalancing: limited concentration risk in any one underlying commodity

The UBS Bloomberg Constant Maturity Commodity Index ("CMCI") diversifies across 29 commodity components and up to five maturities. The CMCI chooses between maturities of five “constant maturities”: three-month and six-month and one-, two- and three-year maturities for certain commodities. This can be done either selectively for individual commodities to diversify over time, or collectively for all those included in the index to diversify both across commodities and over time. In periods of persistent contango, this allows the index to place its exposure at more favorable (i.e., less sloping) sections of the futures curve and keep it there. This can prevent slippage into the steeper part of the curve, or the portion of the curve typically associated with higher roll losses.

Key Investment Terms

Key Investment Terms


"Contango" refers to an upward sloping term structure, in which indices that hold front-month contracts will incur a cost each time contracts expire and must be rolled to more expensive, longer-dated contracts. As contracts move closer to expiration, their value converges with spot prices. So, “contango cost” usually is measured by the difference between spot prices and front-month futures. 



"Backwardation" is the opposite of contango, and refers to a downward sloping term structure. Backwardation tends to occur in contracts and during periods when traders are concerned about scarcity of supplies. Thus, traders would rather have commodities in-hand now (spot) than in the future, and will pay for the privilege.



"Roll Yield" refers to the positive or negative contribution caused by rolling an expiring contract.



Video Viewpoint on Commodity Futures Concepts

Transformation and Innovation in Natural Resources

Shawn Reynolds
Portfolio Manager

Portfolio manager Shaw Reynolds talks about transformation in the corporate world of hard assets, natural resource, and commodity companies. Business model innovation and the return of capital to shareholders increase the relevance of companies in the broader market.

View now

Commodities: Exploring a Constant Maturity Approach

Roland Morris
Portfolio Manager

Commodity Strategist Roland Morris explains the constant maturity concept that underlies the VanEck CM Commoditiy Index Fund and how it invests in commodities. He also shares insights on where the market is in the current commodity cycle.

View now

Market Dynamics and Capital Allocation Drive Metals Outlook

Charl Malan
Senior Analyst

Senior Analyst Charl Malan discusses key drivers behind global demand for certain industrial metals as well as challenges in sustaining supply and the impact these dynamics have on the outlook for this space over the next few years.

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Natural Resource Companies Focus on Returns in 2018

Jan van Eck and Shawn Reynolds
CEO and Portfolio Manager

Jan van Eck, CEO, and Shawn Reynolds, Portfolio Manager, discuss their outlook for commodities and natural resource equities in 2018. Macro tailwinds help the outlook for commodities and companies have restructured to focus on returns.

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Global Conditions Align to Support Commodities in 2018

Roland Morris
Portfolio Manager

Portfolio Manager Roland Morris explores the impact of inflation, global growth, and the rebalancing of supplies on the commodities market in his outlook for 2018.

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What is Contango, Backwardation, and Roll Yield?

Roland Morris
Commodities Strategist

"There are three drivers of returns : the return on collateral or unused cash, the appreciation of the underlying commodities, and roll yield."

View now

Important Disclosure 

Unless otherwise stated, portfolio facts and statistics are shown for Class A shares; other classes may have different characteristics. 

NAV: Unless you are eligible for a waiver, the public offering price you pay when you buy Class A shares of the Fund is the Net Asset Value (NAV) of the shares plus an initial sales charge. The initial sales charge varies depending upon the size of your purchase. No sales charge is imposed where Class A shares are issued to you pursuant to the automatic investment of income dividends or capital gains distribution. It is the responsibility of the financial intermediary to ensure that the investor obtains the proper “breakpoint” discount. Class I and Class Y do not have an initial sales charge. See the prospectus for more information.

1Van Eck Absolute Return Advisers Corporation (the “Adviser”) has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses of the Fund (excluding acquired fund fees and expenses, interest expense, trading expenses, dividends and interest payments on securities sold short, taxes and extraordinary expenses) from exceeding 0.95% for Class A, 0.65% for Class I, and 0.70% for Class Y of the Fund’s average daily net assets per year until May 1, 2020. During such time, the expense limitation is expected to continue until the Board of Trustees acts to discontinue all or a portion of such expense limitation.

2The UBS Bloomberg Constant Maturity Commodity Index (CMCI) is a Total Return rules-based composite benchmark index diversified across 29 commodity components from within five sectors, specifically energy, precious metals, industrial metals, agricultural and livestock. The S&P® 500 Index consists of 500 widely held common stocks covering industrial, utility, financial and transportation sectors. The S&P® Goldman Sachs Commodity Total Return Index (SPGSCITR) is a composite index of commodity sector returns, representing an unleveraged, long-only investment in commodity futures. The Bloomberg Barclays US Aggregate Bond (BbgBarc US Agg Bond) Index is composed of the mortgage-backed and asset-backed securities and government/credit bonds. All indices are unmanaged and include the reinvestment of all dividends, but do not reflect the payment of transaction costs, advisory fees or expenses that are associated with an investment in the Fund. An index’s performance is not illustrative of the Fund’s performance. Indices are not securities in which investments can be made.

UBS and Bloomberg own or exclusively license, solely or jointly as agreed between them, all proprietary rights with respect to the Index. In no way do UBS or Bloomberg sponsor or endorse, nor are they otherwise involved in the issuance and offering of the Fund, nor do either of them make any representation or warranty, express or implied, to the holders of the Fund or any member of the public regarding the advisability of investing in the Fund or commodities generally or in futures particularly, or as to results to be obtained from the use of the Index or from the Fund.

The views and opinions expressed are those of VanEck. Fund manager commentaries are general in nature and should not be construed as investment advice. Opinions are subject to change with market conditions. Any discussion of specific securities mentioned in the commentaries is neither an offer to sell nor a solicitation to buy these securities. Fund holdings will vary.

You can lose money by investing in the Fund. Any investment in the Fund should be part of an overall investment program, not a complete program. Commodities are assets that have tangible properties, such as oil, metals, and agriculture. Commodities and commodity-linked derivatives may be affected by overall market movements and other factors that affect the value of a particular industry or commodity, such as weather, disease, embargoes or political or regulatory developments. The value of a commodity-linked derivative is generally based on price movements of a commodity, a commodity futures contract, a commodity index or other economic variables based on the commodity markets. Derivatives use leverage, which may exaggerate a loss. The Fund is subject to the risks associated with its investments in credit, commodities and commodity-linked derivatives, commodities and commodity-linked derivatives tax, counterparty, debt securities, derivatives, index tracking and data, industry concentration, management, market, operational, regulatory, repurchase and reverse repurchase agreements, and subsidiary risks. The use of commodity-linked derivatives such as swaps, commodity-linked structured notes and futures entails substantial risks, including risk of loss of a significant portion of their principal value, lack of a secondary market, increased volatility, correlation, liquidity, interest-rate, valuation and tax risks. Gains and losses from speculative positions in derivatives may be much greater than the derivative’s cost. At any time, the risk of loss of any individual security held by the Fund could be significantly higher than 50% of the security’s value. Investment in commodity markets may not be suitable for all investors. The Fund’s investment in commodity-linked derivative instruments may subject the Fund to greater volatility than investment in traditional securities.

Investing involves risk, including possible loss of principal. Please call 800.826.2333 or visit for a free prospectus and summary prospectus. An investor should consider investment objectives, risks, charges and expenses of the investment company carefully before investing. The prospectus and summary prospectus contain this and other information. Please read the prospectus and summary prospectus carefully before investing.