The new year has proven to be surprisingly kind to equity investors as “risk on” sentiment has prevailed on Wall Street. Nonetheless, savvy investors remain wary as stocks can just as easily give up all of the profits accumulated on the year, if not more, at the first signs of economic turmoil. With interest rates around the globe expected to remain at ultra-low levels throughout 2013, the hunt for meaningful yield continues, which brings our focus to the newly launched Junior MLP ETF (MLPJ) from Global X [for more MLP news and analysis subscribe to our free newsletter].
The exchange-traded products industry has provided investors with a new tactical tool for adding commodities exposure to their portfolios. Investors can now choose between a variety of ETPs that offer both broad-based and targeted exposure without having to encounter the difficulties and drawbacks of opening a futures account. One of the more intriguing products on the market is the Pure Beta Broad Commodity ETN (BCM), which gives investors access to a basket of 24 different commodities [for more commodity ETF analysis subscribe to our free newsletter]. BCM’s structure and unique strategy make this ETN an appealing option for investors who wish to establish broad-based exposure to commodities over the long-haul.
Equity markets have been on a bullish streak all week as positive economic data on the home front coupled with encouraging developments overseas have helped to restore investors’ confidence. Positive momentum on Wall Street has translated into weakness for the U.S. dollar, helping commodities to inch higher across the board. With earnings season well underway, the spotlight shifts to mining giant Freeport McMoRan Copper & Gold and firm’s 2011 year-end results [see also 12 High Yielding Commodities For 2012].
Just a few short years after the introduction of the first exchange-traded commodity product, there are several dozens of options available for investors interested in accessing this asset class. Interest in commodities has surged as this corner of the market has demonstrated the potential to deliver impressive returns and meaningful diversification benefits [see also Three Commodity Plays For 2012]. Today we profile the Dow Jones-UBS Commodity Index Total Return ETN (DJP), a product from Barclays iPath that has amassed nearly $2.6 billion in assets under management since launching in mid-2006.
Exchange-traded products have become the preferred instrument for many investors looking to add core, as well as tactical, commodities exposure to their portfolios. The “toolbox” continues to expand as investors have multiple options available to them, with some funds focusing in on a specific commodity, while others offer broad-based exposure. One of the oldest commodity-basket ETPs on the market is the iPath S&P GSCI Total Return Index ETN (GSP), which has accumulated a little over $100 million since its launch in mid-2006 [also see 50 Free Web Resources For Commodity Investors]. GSP is similar to other broad commodity ETPs in many ways, however, its product structure and portfolio composition results in a unique risk/return profile that may attract some investors, while potentially turning away others.
Many investors looking to add broad-based commodity exposure to their portfolios, ranging from individuals to billion dollar hedge funds, have turned to ETFs as the most efficient vehicle for doing so. While the most popular products are generally those that have the longest operating history, more and more investors are turning to new products that are popping up as a tool for establishing exposure to this potentially promising–and risky–asset class. One of the more innovative commodity ETFs to debut in recent years is the United States Commodity Index Fund (USCI), which is the result of a collaboration between United States Commodity Funds, the firm behind the ultra-popular UNG and USO, and Summerhaven.
Just a few short years after the introduction of the first exchange-traded commodity product, there are dozens of options available for investors interested in accessing this asset class that is capable of delivering big returns and meaningful diversification benefits. Most investors are familiar with only the largest and most popular of these products, but those willing to dig a bit deeper will uncover some very intriguing investment opportunities [see also Agricultural ETF Showdown: CROP vs. MOO]. Today we profile the DB Commodity Index Tracking Fund (DBC), one of the oldest and most popular broad-based commodity ETPs on the market.
In recent years, alternative energy has grown immensely in both popularity and use, as nations across the globe seek to end the fossil fuel addiction by which modern society is currently saddled. While there are various forms of renewable energies, one of the most popular and practical comes in the form of solar energy. Solar energy is generally derived from photovoltaic modules, which are usually made from crystalline silicon to help capture the sun’s light. With the sun being a never-ending source of energy (at least for our lifetimes), it is no surprise to see a wealth of companies make a move into the solar industry, with one of the best-known companies being First Solar (FSLR).