This article originally appeared on ETFdb.com Van Eck, the New York-based ETF issuer best known for its hard asset and country specific funds such as the Gold Miners ETF (GDX) and the Market Vectors Russia ETF (RSX), announced further expansion in the commodity space with plans for an ‘Unconventional Oil & Gas ETF’. If approved, the fund will mark the 41st product from the rapidly growing ETF giant and could help the company grow its assets in the oil space, one of the few areas in which Van Eck’s current lineup is lacking. While many details were not yet released in the SEC filing, expense ratio and ticker symbol are still unavailable, we have highlighted some of the key points from the filing below:
Gold investing has long been a popular option for investors looking to diversify their holdings. The precious metal is actively traded by a number of individuals and institutions, but is also held by a number of other investors as well. It has become a popular safe haven as there seems to be very few safe options left, especially now that the Swiss franc has been pegged to the euro. A gold allocation can also act as a hedging tool in a portfolio, as the metal’s price typically moves inversely when compared to major equity benchmarks, generally offering nice returns when broad markets are slumping [see also The Ultimate Guide To Gold Investing].
To call the last few months volatile would be an understatement; markets have been violently swinging back and forth, taking investors on a wild ride. While major indexes have experienced significant headwinds, other asset classes, like gold, have generally performed well. But when it comes to crude oil, a number of investors may be frustrated with the past two months, as the fossil fuel has taken something of a nosedive [see also Dividend Special: Top Companies In Every Major Commodity Sector].
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Gold fever has struck the markets as unstable equities have led to the metal appreciating at a rapid pace. In fact, the price per ounce has shot up roughly 50% in the trailing year as a number of factors have converged to drive the price skyward. As the metal has rapidly approached the $2,000 per ounce level, investors have begun to speculate whether or not it is overvalued. There are compelling arguments for either side, but the truth is, gold is a difficult asset to value; it produces no cash flow, pays out no dividends, and has no underlying financials to sort through to determine what its true value is. One analyst goes as far to say that trying to value the metal is like “trying to solve a Rubik’s cube while you are blindfolded” [see also Three Ways To Play $2,000 Gold].
This article originally appeared on ETFdb.com Teucrium, the company behind the first corn ETF and innovative energy commodity products, doubled the size of its product lineup on Monday with the launch of three new single-commodity funds. Two of the new additions to the fast-growing ETF lineup are first-to-market concepts, while a third will offer exposure to a soft commodity already covered by two iPath ETNs. The new Teucrium products are:
August was a tumultuous months for markets across the board. The first ever downgrade of U.S. debts was handed out by S&P while the Fed announced it would be freezing rates for nearly two years. Markets reacted poorly to the headlines through out the month, swaying back forth by as much as 5%. Volume went through the roof as traders made a play to profit on volatile markets, while others pulled their assets and headed for higher ground and safer asset classes [see also Dividend Special: Top Companies In Every Major Commodity Sector].