Risk Parity Radio
Episode 422: The BCI Fund, More Cowbell, Fidelity's Share Lending Program And Portfolio Reviews As Of May 9, 2025
May 11, 2025
Listeners are in for a treat as the hosts delve into comparing two commodity funds, PDBC and BCI, revealing hidden differences that can impact returns. They also explore the benefits of small cap value stocks, emphasizing their role in diversifying portfolios, especially during downturns. Fidelity's new gold lending program sparks lively discussions about risks versus rewards, all while the team maintains a humorous tone. Plus, there’s a nod to charitable giving efforts, keeping the conversation engaging and socially conscious.
28:51
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Quick takeaways
- The comparison between commodity ETFs BCI and PDBC revealed significant differences in management styles and expense ratios impacting investor returns.
- Small-cap value stocks offer crucial diversification benefits in risk parity portfolios, particularly during market downturns, as emphasized in recent discussions.
Deep dives
Email Insights on ETF Comparisons
A listener named Ed inquired about the comparison of two commodity ETFs: PDBC and BCI. While both funds respond to different commodity indexes, they display significant differences in management styles and expense ratios. PDBC is actively managed with a higher expense ratio of 0.59%, whereas BCI is passively managed and has a lower expense ratio of 0.26%. The discussion highlighted that while both funds have reasonably comparable performance, BCI's structure avoids complexities often associated with tax reporting, making it a viable option for investors.
