Three Things Wall Street Journal Didn’t Tell You About Commodities
Investing in commodities has certainly picked up in recent years, but it seems that the overall industry has begun to experience some growing pains. As is common with newer investment types (not that commodities are new, but their heavy popularity is), analysts will lash out and tell investors why this asset class is bad news. Such is the case with a recent article in the Wall Street Journal entitled “The Case Against Commodities“. This piece outlines a number of the dangers and issues that come along with commodity investing. But investors shouldn’t take it at face value, as there are a number of factors that WSJ neglected to mention [see also Three Reasons Why Gold Is Overvalued].
ProShares Debuts Leveraged Natural Gas ETFs
This article originally appeared on ETFdb.com ProShares, the largest issuer of geared ETFs that has made a push into the alternatives space, adding two more products to its lineup late last week. The new Ultra DJ-UBS Natural Gas (BOIL) and UltraShort DJ-UBS Natural Gas (KOLD) are both linked to the Dow Jones-UBS Natural Gas Subindex, a benchmark that consists of natural gas futures contracts. BOIL will seek to deliver daily results that correspond to 200% of the change in the underlying index, while KOLD will target -200% of the daily returns of the benchmark. With the launch of the two new products ProShares now offers ten leveraged commodity funds, including ETFs linked to gold (UGL, GLL), silver (AGQ, ZSL), crude oil (UCO, SCO), and a broad basket of natural resource futures (UCD, CMD). “There has been strong demand for geared commodity ETFs, as investors have come to recognize the importance … See the full story here


