IDX Commodity Opportunities Fund (COIDX)

Bringing Opportunistic Commodity-focused exposure to Financial Advisors Family Offices Institutions

A Commodities & Risk-Management Pedigree

At IDX we are focused on developing Risk-Managed Solutions that make it simple for fiduciaries and investors to participate in commodities beyond what’s available through traditional managed futures or long-only commodities funds.

IDX combines expertise across the managed futures and ETF landscape to deliver institutional investors risk-managed exposure that is focused on commodities with an ability to go short as well as opportunistically participate across asset classes.

Why Does it Make Sense to Own (COIDX)?

  • The IDX Commodity Opportunities Fund (COIDX) seeks to tactically allocate to futures and ETFs, using a rules-based approach, in an effort to capture trends across asset classes (with a focus on commodities).

  • The IDX Commodity Opportunities Fund (COIDX) seeks to deliver a superior risk/return profile relative to long-only (passive) commodity exposure.

  • Unlike managed futures funds, the IDX Commodity Opportunities Fund (COIDX) can utilize ETFs to participate capture trends across a broader ecosystem of exposure (i.e. Miners, Oil Services) as well as entire industries not captured by the futures markets (i.e. CleanTech, AgTech)

More than just Managed Futures

The Fund’s manager, IDX, believes that the commodities

will be an important source of return for investors going forward. 

However, traditional managed futures funds are typically:

(i) Not necessarily focused on commodities exposures and

(ii) Only express allocations through futures contracts. 

IDX believes a crucial part of the commodity investing landscape, going forward, will be expressed in commodities-related companies…as well as the commodities themselves.

  • Our models seek to profit from bullish & bearish trends across asset classes with a dedicated focus on commodities.

  • In addition to futures contracts, the Fund seeks to profit from trends within the ETF landscape as well (e.g. Mining companies, Oil Servicers, Agri-Business,etc.)

The Importance of a Long/Short Approach

“Commodities” is not a single asset class

Most investors think of Commodities as a single long-only allocation to a fund.  In most cases, commodities funds are weighted by open interest and therefore heavily skewed towards a long energy exposure.

The reality, however, is that the commodities markets are very different and reflect nuanced and, often opposing, outlooks.  Precious metals, for example, may respond strongly to geo-political risks and interest rate movements, while Grains are moving in a completely opposite direction based on drought forecasts.

We believe that investors that are serious about commodities exposures in their portfolios should consider a long/short approach.  The global commodities markets represent a diverse and multi-faceted ecosystem that have different drivers of returns that can move very differently based on market conditions.  We believe investors’ approach should reflect this reality.

*Correlation is a statistic that measures the degree to which two securities move in relation to each other.

What IDX Believes In

Volatility Can Be Favorable, But Not Without Downside Protection

Commodities have long been an important source of return within institutional portfolios.  Over the last decade, generationally low interest rates and inflation combined with quantitative easing have caused investors to chase increasingly speculative or growth-oriented investments.  The issue remains that commodities have always been a volatile asset class.  IDX seeks to harvest that volatility as a source of return for investors by tactically establishing both long and short exposures that seek to take advantage of trends across all environments.

Long/Short Access to Commodities is Important

We began managing commodities exposure in the form of Separately Managed Accounts in 2019 with a dedicated focus on Risk-Mitigation. Commodities are a powerful asset class for investors, particularly during periods of non-zero inflation and increased geo-political risks.  That said, the volatility and large drawdowns of the asset class are a stumbling block for many investors.  By taking an opportunistic long/short approach to commodities, IDX seeks to provide investors with a commodity-focused exposure that can make money in any environment.

An Ability to invest across Futures & ETFs

Futures contracts have largely remained unchanged since the 70’s while all of the innovation in providing exposures has been in the ETF landscape.  By moving outside just futures contracts, the IDX Commodity Opportunities Fund can participate in trends within the commodities ecosystem that extend beyond just the raw material (such as Oil Services or Miners) as well as entirely new parts of the ecosystem that have no futures representation at all (such as “CleanTech” or “AgriBusiness”).

IDX OVER THE YEARS

A brief history of our expertise

GROWTH & VOLATILITY

Commodities historically have been an important source of diversified return within portfolios as well as providing a hedge against inflation and geopolitical risk.  However, that has come at the cost of an elevated risk profile.  The Fund seeks to profit in both up and down commodities markets while demonstrating a low correlation to either stocks or bonds.

DRAWDOWNS

In traditional asset classes a “Bear” market is classically defined as a 20% or greater decline from recent highs amid widespread pessimism and negative sentiment. Many investors are surprised to learn that Commodities as an asset class have commonly exceeded bear market territory, as classically defined, over the years. While the payoff, over time, may be large, the cost to get there can be high.

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FAQs

No the Fund does not produce a K-1. Shareholders will receive a 1099 on an annual basis.

Because the fund is designed to be opportunistic, it has the ability to transact across any futures market with sufficient liquidity.  That said, it is expected that the majority of futures exposure will be among the top 30 markets by open interest.

Unlike most managed futures funds, COIDX expects to have the majority of the fund invested in commodities the majority of the time, over a market cycle.  Because there can be periods in which few opportunities exist in within the commodity spectrum (either long or short), the Fund has the ability to try and capitalize on trends in other asset classes.

Yes!  This is one of the distinguishing features of COIDX – the ability to invest in various commodity and hard asset related ETFs.  This allows for (i) the potential to capitalize on more sophisticated trends within the commodities complex (e.g. short oil vs. long oil producers) as well as (ii) the ability to capitalize on industries that aren’t touched by futures (e.g. agri-business, clean-tech, green-tech, infrastructure, etc.)

Fund Facts & Stats

Fund Snapshot

Ticker COIDX
CUSIP 45174B100
Inception Date 11/14/2022

Expenses

Management Fee1.49%
Gross Expense Ratio3.63%
Net Expense Ratio1.84%
Minimum Investment$10,000.00

Get In Touch

Call IDX at 800-403-4349, send a message using the form below, or email us at info@idx-us.com for a quick response.

For media inquiries, please email idx@dlpr.com.

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