Commodity ETF Spotlight: UCI In Focus

With the rapid expansion and development of the ETP industry, investors can now choose from a vast selection of products that offer both broad-based and sector-specific commodity exposure. With the exchange-traded product structure, investors have the ability to gain access to commodities without having to encounter the difficulties and drawbacks of opening a futures account. One of the most appealing broad-based commodity products on the market is the E-TRACS UBS Bloomberg CMCI ETN (UCI), which offers exposure to a basket of 26 different commodity futures contracts of varying maturities [see also 12 High-Yielding Commodities For 2012]. UCI’s structure and unique methodologies make this ETN an attractive option for investors who wish to establish a broad-based and long-term commodities position in their portfolio.

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Commodity Trading Trends: Soft Spot For Cotton

Cotton, the fluffy commodity, was one of the most talked about investments of 2010. With a number of factors combining, cotton prices spiked to historic highs last year and led to a number of investors jumping in on the trend, only to get burned when cotton tanked midway through 2011. Global consumption for this year was expected to surge, but unfortunately, the expected 120 million tons of cotton use was revised down to 113 million after issues in China and Pakistan led to lower demand. As the need for cotton began to cool down, supplies ramped up all over the world, putting downward pressure on prices [see also Inside Cotton’s Epic Crash].

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The Five Most Active Commodities of 2011

This past year has been plagued with volatility, as global instability has put a major damper on commodity markets. Thought the first few months looked promising, the latter 30 day periods were plagued by euro-zone woes and choppy markets. As if commodities weren’t volatile enough to begin with, throwing in shaky markets only exacerbates things. It was a tough year for a number of commodity investors, but that doesn’t mean that it was without its gains. Gold, for example, has had a stellar year compared to most investments, bringing solid gains in portfolios that have been hard pressed to find any breathing room. One of the most interesting statistics to look at on the year is where the money was flowing and which assets saw the most investing activity. Below, we outline the most popular commodities of 2011 to help investors find the most liquid options for the coming year … See the full story here

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12 High-Yielding Commodities For 2012

Commodity investing has been extremely popular in recent years as investors have discovered the benefits that these investments can offer for an individual portfolio. Exposure to commodities offers benefits like low correlation, inflation hedges, and also heavy exposure to some of the world’s fastest growing markets. But there is still something of a disconnect between income investors and commodities, as these investments are typically seen as growth plays or simply left for active traders. But those who overlook commodity stocks with even mediocre yields could be missing out [see also Jim Rogers Says: Buy Commodities Now, Or You’ll Hate Yourself Later].

Posted in Academic Research, Agriculture, Aluminum, Commodity ETFs, Commodity Producers, Copper, Energy, Exclusive, Gold, Industrial Metals, Natural Gas, Precious Metals, Silver, WTI | Tagged , , , , , , , , , , , , , , , , , , , | 131 Comments

This Week In Commodities: December 9th Edition

This past week was yet another one dominated by European headlines, as commodity markets took a backseat to investor speculation and worry over how the EU would respond to their debt crisis. The nation-bloc finally did come to an agreement early today, which relieved some commodities of a big weight on their shoulders. Crude oil was a big story this week as it started off the week strong, hitting $102/barrel intraday, to sinking all the way to $98/barrel. Despite the good news from Europe, crude was down in early trading today. As we near the end of the year and investors prepare them selves for a, hopefully, strong 2012, it is important to gain a fresh perspective on various commodity markets. In an effort to help better educate commodity investors on today’s environment, we outline three of the best commodity stories from around the web this week [see also 25 … See the full story here

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25 Ways To Invest In Crude Oil

Crude oil has been in the limelight in recent weeks, as its priced surged from a low of $75 barrel to break through the century mark, marking an increase of over 35%. While oil has long been, arguably, the most popular commodity on the market, investors and traders alike are looking to hop in on the action as crude presents itself with a wealth of opportunities. Though most people simply think of gasoline when they hear the term crude oil, this fossil fuel is actually a vital part of our everyday lives. Crude oil is utilized in everything from the production of plastics and fertilizers, to cosmetics and industrial solvents [see also Crude Oil On Fire: Examining The Commodity’s Rise].

Posted in Academic Research, Brent Oil, Commodity ETF Analysis, Commodity ETFs, Commodity Futures, Commodity Producers, Energy, Exclusive, Gasoline, WTI | Tagged , , , , , , , | 55 Comments

Commodity ETF Spotlight: BCM In Focus

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 newest products on the market is the Pure Beta Broad Commodity ETN (BCM), which gives investors access to a basket of 24 different commodities [see also Why The IEA Is Backing Nuclear Power]. BCM’s structure and unique methodologies make this ETN an appealing option for investors who wish to establish a broad-based and long-term commodities position in their portfolio

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Commodity Trading Trends: Natural Gas At A Pivotal Moment

Natural gas, one of the most popular commodities in the world, has been under the microscope lately as its volatility has gone through the roof. Normally, this time of year sees gas prices rise as demand around the world increases to combat the cold weather. But due to a mild start to the winter, many people are getting along just fine without their gas-powered heating utilities. When it comes to trading natural gas and its price outlook, the general rule of thumb is not to look to today’s weather necessarily, but the coming ten-day forecast for the majority of the country. Gas prices will be more in line with the 10 day average than any one particular day, making it a commodity that requires constant monitoring [see also 25 Ways To Invest In Natural Gas].

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Three Commodities Dividend Lovers Must Own

Over the years, value investing has emerged as one of the favorite strategies for a number of individuals and advisors. A steady stream of income that dividends provide can help protect a portfolio from market dips as well as adding an inflation hedge. The methodology has become so popular that some investors swear by it and are uneasy about making allocations to anything that lacks an important dividend yield. Many feel that value principles conflict with the commodity space; when someone thinks of commodity investing, they typically think of active trading of futures contracts or exchange traded products. But there are a number of securities that may be overlooked [see also Dividend Special: Top Companies In Every Major Commodity Sector].

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Three Commodities Ripe With Political Risk

Any commodity investor worth their salt will tell you that investing in these products requires an understanding of the global economy, not just that of the US. In fact, a number of the world’s most popular commodities, like gold and copper, are mainly produced abroad. Though the U.S. holds its own when it comes to a number of agriculture products among others, the majority of commodities are derived elsewhere. As investors begin to dig deeper into their favorite commodities, they may find that the underlying product is most often developed or produced in an emerging or even frontier market, which can carry some risks [see also 50 Ways To Invest In Gold].

Posted in Agriculture, Alternative Energy, Cocoa, Commodity Producers, Exclusive, Nuclear, Precious Metals, Silver | 6 Comments