How to Invest in Ethanol
Ethanol is an alcohol that can be used as a fuel to power motor vehicles. Ethanol can be produced using both corn and sugar, and as such this fuel source has appeal because it burns cleaner than fossil fuels.
Brazil is a major producer of ethanol, though the industry has expanded considerably in the U.S. as well in recent years. Many vehicles in the U.S. now run on a blend of ethanol and oil. Ethanol-powered vehicles have been proven to lower emissions.
Investors seeking exposure to ethanol have multiple options for gaining exposure to this fuel source, including exchange-traded futures contracts and investing in companies whose operations focus on developing ethanol.