What You Need To Know About Commodity Indexes

For many investors, index investing continues to draw support in most portfolios. The proponents of the passive style of investing continue to grow as the poor returns of the “lost decade” have shown that active investment management, for the most part, fails to the beat the market–especially once trading costs, fund fees and taxes are taken into account. As index investing is relatively passive, index funds usually have lower management fees and expenses than actively-managed funds. As such, the number of stock and bond index funds and ETFs continues to grow, and that growth is also spreading into the commodity space [for more commodity news and analysis subscribe to our free newsletter].

Posted in Academic Research, Actionable Ideas, Agriculture, Asset Allocation, Commodity ETFs, Commodity Futures, commodityHQ.edu, Energy, Industrial Metals, Precious Metals | Tagged , , , , | 2 Comments

GCC In Depth: The Five Minute Guide To The Continuous Commodity Index Fund

The rapid development of the ETF industry has democratized the world of commodity investing, allowing average investors to add exposure to a variety of different commodities through a single ticker. ETPs are proving to be the most efficient means for achieving such exposure by offering low expense ratios, diversification, and more trading flexibility. For those investors looking to capture exposure across a wide array of commodities, GreenHaven’s Continuous Commodity Index Fund (GCC) is an intriguing option, as the fund utilizes a unique methodology of equal weighting and an addition of a Treasury Bill component [for more commodity news and analysis subscribe to our free newsletter].

Posted in Agriculture, Asset Allocation, Commodity ETF Analysis, Commodity ETFs, Energy, Industrial Metals, Precious Metals | Tagged | Leave a comment

Commodity ETFs: Five Factors To Consider

This article originally appeared on ETFdb.com. Commodity ETPs can be extremely powerful tools for tapping into an asset class capable of providing both return enhancement and diversification benefits. With dozens of products available–there are more than 120 U.S.-listed commodity ETFs according to the ETF screener–picking the right fund for your investment objectives and risk tolerances can be challenging. Beyond the type of commodity included, there can be several attributes of commodity ETPs that shape the risk/return profile; below, we look at five factors to consider when trying to narrow down the universe and find the right commodity ETF (or ETN):

Posted in Commodity ETFs, Commodity Futures, commodityHQ.edu, Energy, Natural Gas | Tagged , , , , , , , , , , | 2 Comments

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.

Posted in Asset Allocation, Commodity ETFs | Tagged , , | Leave a comment
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