Is Commodity Investing Dying? Part 1
Commodity futures markets were originally designed for producers to hedge their risks against unforeseen complications. But as the years went on, more and more retail investors began piling into this asset class, as they enjoyed the diversification benefits offered by hard assets. Now, many long-term buy and hold investors allocate anywhere from 5-20% of their assets to commodity holdings, but that trend may be hitting a roadblock [for more commodity news and analysis subscribe to our free newsletter].
How Much Money Your Favorite Commodity ETFs Make
ETF investing turned the commodity world from a difficult-to-reach asset class to exposure that any retail investor could quickly add to their portfolio. The years have seen a number of innovative products come and go, but through thick and thin a select group of funds have broken away from the rest, as they have maintained their popularity. And just like any other business, these funds need to make money to stay open (and to hopefully make you money), as they have plenty of operating costs to take care of [for more commodity ETF analysis subscribe to our free newsletter].
Commodity ETP Spotlight: DJP In Focus
Just a few short years after the introduction of the first exchange-traded commodity product, there are several dozens of options available for investors interested in accessing this asset class. Interest in commodities has surged as this corner of the market has demonstrated the potential to deliver impressive returns and meaningful diversification benefits [see also Three Commodity Plays For 2012]. Today we profile the Dow Jones-UBS Commodity Index Total Return ETN (DJP), a product from Barclays iPath that has amassed nearly $2.6 billion in assets under management since launching in mid-2006.
How Balanced Is Your Commodity ETF?
This article originally appeared on ETFdb.com As natural resource prices have climbed skyward, interest in exchange-traded products that offer exposure to commodities has accelerated as well. While some investors prefer to achieve targeted access through resource-specific funds–such as those focusing on corn (CORN), sugar (SGG), or copper (JJC)–the most popular commodity ETPs are those that include a variety of types of resources. And while these products are similar in that they employ a broad-based technique to delivering commodity exposure, they are far from identical.
