Short Australian dollar and soybean ETCs best performers in March

Funds shorting the Australian dollar against the euro and tracking soybean prices were the best performing exchange-traded commodities (ETCs) last month, according to analysis by Fundweb.

Data from FE Analytics, which looks at ETCs in both the commodities and currency universes, shows the ETFS 3x Short AUD Long EUR fund was the top performing product in March, delivering a 9.74% return.

The ETC tracks the MSFXSM Triple Short AUD/EUR Index and offers a triple-leveraged exposure to the daily change in short Australian dollar against the euro.

The security benefited as the Australian dollar weakened against the euro last month. The currency reached a record high against the euro in January as investors fled the eurozone debt crisis.

The euro gained over March after the European Central Bank initiated its second three-year long-term refinancing operation at the end of February. In the opening days of April, however, the euro has weakened once more as debt crisis fears re-emerge over Spain’s financial health.

ETFS Soybeans USD and Source S&P GSCI Soybeans Total Return were the second and third best-performing ETCs during March, returning 6.63% and 5.37%, respectively.

The securities gained as soybean prices were supported by increased demand from China and tightening supply. At the start of April, soybean prices were at a six-month high after US farmers said they intend to plant less of the crop this year.

Source S&P GSCI Cotton Total Return came in fourth place with a 2.52% return, ETFS 3x Short JPY Long EUR took the fifth spot with 2.24% and ETFS 3x Short CAD Long EUR was in sixth at 1.96%.

The top-ten list of March’s best-performing ETCs is completed by the ETFS Brent Oil USD, DB Brent Crude Oil Booster GBP Hedged, ETFS Gasoline USD and ETFS 3x Long GBP Short EUR products.