Day trading is a coveted position for a number of investors around the world. You get to be your own boss, work your own hours, and, potentially, make a large amount of money. Of course it is not without its risks, as it comes with no benefits, no guaranteed salary, and absolutely no retirement plan. Still, for those investors who love the thrill of successfully trading on their own, the commodity world is flush with opportunities to turn a profit. Below, we outline four vital commodity ETFs to help day traders quickly execute calculated positions [for more commodity ETF news subscribe to our free newsletter].
United States Natural Gas Fund LP (UNG)
UNG had been a dirty word in the ETF world until recently, as the fund had lost nearly 98% since its inception. Now, natural gas is making a comeback and this fund is doing the same. But no matter how it is performing, UNG is currently among the most active commodity ETFs in the world, trading an average of 10 million times per day in the trailing month. The fund is highly sought after for its hefty volatility, something that most active traders look for in order to turn a nice profit. The fund has about $1.1 billion in assets and charges an annual fee of 60 basis points.
SPDR Gold Trust (GLD)
GLD is the world’s largest commodity ETF and is also among the largest funds period. With nearly $75 billion in total assets, this physically-backed gold behemoth dwarfs its competition. But apart from its size, GLD trades over 11.3 million times each day an also has an extremely active options market. Gold is already one of the most popular speculative instruments currently available, so it should come as no surprise that day traders love GLD [see also Why No Investor Should Own GLD].
iShares Silver Trust (SLV)
SLV is currently the third largest commodity fund, carrying more than $10.9 billion in assets. The fund tracks silver bullion and trades just over 15.6 million times each day. Though silver is not quite as popular as gold, it is still a big-name asset for a lot of traders as it can act as a speculative play for certain segments of the industrial world given its ties to that market sector.
United States Oil Fund (USO)
Crude oil is arguably the most vital commodity in the world. Simply put, without crude, the world would not be able to function (at least in this day and age). That being said, it should come as no surprise to see this fund maintain such a high popularity given that it tracks front month crude futures. USO trades just over 8.7 million times per day and has $1.3 billion in assets under management [see also 25 Ways To Invest In Crude Oil].
Disclosure: No positions at time of writing.