What Are Cocoa ETFs?
Achieving cocoa exposure through exchange-traded products allows investors to minimize trading activity and position maintenance, as the exchange-traded structure is ideal for those who value liquididty and transparency. The best pure play option for U.S. investors is the iPath Dow Jones-UBS Cocoa Total Return ETN (NIB), which is linked to an index comprised cocoa futures. It should be noted that NIB is an ETN, and as such exposes investors to the credit risk of the issuing institution.
European investors will generally have additional opportunities for gaining exposure to cocoa through exchange-traded products; ETF Securities offers products delivering leveraged and inverse exposure to this commodity as well.
Other Ways To Invest In Cocoa
Cocoa In The News
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