For Day Traders: The Most Liquid ETF for Every Commodity
The introduction of commodity ETFs brought trading to a whole new level, as your average retail investor now has the opportunity to trade something like natural gas futures through a single ticker. As the years have gone on, a number of these products have grown to be some of the most widely-used financial instruments for their respective commodity. One advantage to ETFs, however, is that liquidity is not hindered by average volume due the the creation process. Instead, there will just be some funds that are more liquid and tradable than others [for more commodity ETF news and analysis subscribe to our free newsletter].
Alcoa Beats, Provides Shaky 2012 Forecast
Its official, earnings season has begun and Alcoa (AA) has kicked things off with their report after the bell yesterday. AA was able to top estimates by showing a net loss of $143 million. “Excluding legal and environmental remediation costs, it had per- share profit of 3 cents” writes Sonja Elmquist of Bloomberg. Analysts had been expecting the company to break even or to show EPS of 0.01 depending on which sources you conglomerate [for more aluminum news and analysis subscribe to our free newsletter].
For Long Term Investors: The Cheapest ETF for Every Commodity
After gathering more than $1 trillion in total assets under management, ETFs have cemented their place in the financial world. Among the universe of nearly 1,500 products, commodity funds have garnered a lot of attention, as these products have democratized an asset class that was once difficult to reach by retail investors. Now, there are a number of exchange-traded options to help you gain exposure to your favorite hard assets, all at a low cost.
Earnings Sneak Peek: Alcoa (AA)
Alcoa Inc is one of the biggest names in the commodity world as it is the world’s third largest producer of aluminum. The company has also gained a fair amount of attention being that it is often synonymous with the start of earnings season. Each quarter Alcoa is one of the first major companies to report their earnings, and today marks the results from Q3 2012 [for more aluminum news and analysis subscribe to our free newsletter].
Marc Faber: Why Industrial Commodities Will Continue to Fail
Marc Faber, who shares the moniker “Dr. Doom” with Nouriel Roubini, has made a name for himself not only from his intelligence, but also from his outspoken and often controversial views. Faber has recently predicted a 100% chance of a U.S. economic recession and says that he is simply waiting for things to fail. To put things lightly, he is something of a bear, as he often points out the faults of the economy or singles out failing sectors. It seems as though he has done it again, but this time with industrial commodities, namely industrial metals [for more industrial metals news and analysis subscribe to our free newsletter].
Which Aluminum ETF Is Right For You? JJU vs. FOIL
Over the years, aluminum has made its stance in the world, becoming one of the most popular metals in both the industrial and financial universe. Aluminum is also one of the most abundant metals on earth as well as the third most widespread element. Its low density and ability to withstand corrosion makes it a popular choice for a wide variety of uses, stretching from foil and cans to cars and aircraft. Because of its numerous applications, the metal has also found its way into many investor’s portfolios, providing yet another potentially lucrative opportunity in the commodities space. And thanks to the development of the exchange-traded fund industry, investors now have several ways to gain access to this industrial commodity. Below, we outline the two most popular aluminum ETFs and which one will fit your investment objectives [see also Jim Rogers Says: Buy Commodities Now, Or You’ll Hate Yourself Later].
How to Build a Sky is Falling Portfolio
Considering our current global economic environment, it is perhaps not surprising to find many investors with a rather pessimistic short term outlook for both the U.S. and the broader global economy. Despite the fact that markets are near a four year high, there are still plenty of issues looming that have the general public fearful for the future. And while many corners of the market have struggled to stay afloat, there have been some bright spots that have performed relatively well. Some of these asset classes are historically known to be relatively low-risk investments that tend to fare well during uncertain or adverse economic environments, including inflation-protected securities, gold, and several other commodities. For bearish investors who wish to shift their assets towards these safer corners of the market, we outline an all ETF portfolio that could potentially provide meaningful return during economic turmoil [for more commodity ETF news and trading tips subscribe to our free newsletter].
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].
Commodity Trading Trends: Aluminum In Focus
Aluminum, one of the most popular commodities for its wide range of industrial uses, is under a significant amount of pressure as of late. The metal has endured its biggest drop since the global recession, and prices have slumped so low that it may make 25% of the world’s aluminum smelters unprofitable. Since May 1, the metal has fallen by nearly 23% and has investors chomping at the bit to make a potentially profitable trade in this beaten-down commodity [see also 25 Ways To Invest In Silver].
Dividend Special: Top Companies In Every Major Commodity Sector
As the years have progressed, commodity exposure has evolved from a binary factor, either you have it or you don’t, to a necessary component of every portfolio. But as markets have been continually beaten down as of late, for many investors, finding the right commodity allocation has been something of a difficult task. A number of investors have stopped looking for growth, and taken cover in value funds that pay out annual yields in a time when no returns are guaranteed [see also The Guide To The Biggest Companies In Every Major Commodity Sector].
