4 Commodity ETFs for Day Traders

Day trading is a coveted position for a number of investors around the world. You get to be your own boss, work your own hours, and, potentially, make a large amount of money. Of course it is not without its risks, as it comes with no benefits, no guaranteed salary, and absolutely no retirement plan. Still, for those investors who love the thrill of successfully trading on their own, the commodity world is flush with opportunities to turn a profit. Below, we outline four vital commodity ETFs to help day traders quickly execute calculated positions [for more commodity ETF news subscribe to our free newsletter].

United States Natural Gas Fund LP (UNG)

UNG had been a dirty word in the ETF world until recently, as the fund had lost nearly 98% since its inception. Now, natural gas is making a comeback and this fund is doing the same. But no matter how it is performing, UNG is currently among the most active commodity ETFs in the world, trading an average of 10 million times per day in the trailing month. The fund is highly sought after for its hefty volatility, something that most active traders look for in order to turn a nice profit. The fund has about $1.1 billion in assets and charges an annual fee of 60 basis points.

SPDR Gold Trust (GLD)

GLD is the world’s largest commodity ETF and is also among the largest funds period. With nearly $75 billion in total assets, this physically-backed gold behemoth dwarfs its competition. But apart from its size, GLD trades over 11.3 million times each day an also has an extremely active options market. Gold is already one of the most popular speculative instruments currently available, so it should come as no surprise that day traders love GLD [see also Why No Investor Should Own GLD].

iShares Silver Trust (SLV)

SLV is currently the third largest commodity fund, carrying more than $10.9 billion in assets. The fund tracks silver bullion and trades just over 15.6 million times each day. Though silver is not quite as popular as gold, it is still a big-name asset for a lot of traders as it can act as a speculative play for certain segments of the industrial world given its ties to that market sector.

United States Oil Fund (USO)

Crude oil is arguably the most vital commodity in the world. Simply put, without crude, the world would not be able to function (at least in this day and age). That being said, it should come as no surprise to see this fund maintain such a high popularity given that it tracks front month crude futures. USO trades just over 8.7 million times per day and has $1.3 billion in assets under management [see also 25 Ways To Invest In Crude Oil].

Don’t forget to subscribe to our free daily commodity investing newsletter and follow us on Twitter @CommodityHQ.

Disclosure: No positions at time of writing.

This entry was posted in Actionable Ideas, Commodity ETFs, Commodity Futures, Energy, Gold, Natural Gas, Precious Metals, Silver, Trading, WTI and tagged , , , . Bookmark the permalink.

Commodity HQ is not an investment advisor, and any content published by Commodity HQ does not constitute individual investment advice. The opinions offered herein are not personalized recommendations to buy, sell or hold securities or investment assets. Read the full disclaimer here.

2 Responses to “4 Commodity ETFs for Day Traders”

  1. [...] Below is a list of the world’s top ten silver producing companies in 2011. While many of these companies have high levels of output, it is important to remember that many of them do not exclusively focus on silver and thus may not be the best ‘pure play’ on silver prices. With that being said, we have put an asterisk next to the companies that have been identified as ‘primary silver producers’. (All figures are in millions of ounces) [see also 4 Commodity ETFs for Day Traders]. [...]

Leave a Reply

  • Subscribe

    • RSS Icon   Twitter Icon
    • Sign up for free today:
  • Search