What Are Biofuels ETFs?
Investors looking to establish exposure to biofuels are able to do so while enjoying all the benefits of the exchange-traded structure. The ELEMENTS MLCX Biofuels Index ETN (FUE) is linked to an index that serves as a benchmark for the biofuels sector. The index comprises futures contracts on physical commodities that are either biofuels themselves or feedstock commonly used in the production of biofuels.
Investors should note that FUE will not provide exposure to spot prices, but rather deliver returns available from a futures-based strategy. Also, it should be noted that this product is an ETN, and as such the credit risk of the issuing institution should be considered.