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

In Depth: The Five Minute Guide To The United States Commodity Index (USCI)

Many investors looking to add broad-based commodity exposure to their portfolios, ranging from individuals to billion dollar hedge funds, have turned to ETFs as the most efficient vehicle for doing so. While the most popular products are generally those that have the longest operating history, more and more investors are turning to new instruments that are popping up as viable tools for establishing exposure to this potentially promising–and risky–corner of the market [see 10 Commandments Of Commodity Investing]. One of the more innovative “third generation” commodity ETFs to debut in recent years is the United States Commodity Index Fund (USCI). This one-of-a-kind product is the result of a collaboration between United States Commodity Funds, the firm behind the ultra-popular UNG and USO, and Summerhaven.

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5 Effective ETFs to Hedge a Frothy Stock Market

In the minds of many, our stock market is a bit bloated at its current levels. Despite weak fundamentals, major benchmarks are near pre-recession levels which is more than likely the result of multiple rounds of QE artificially boosting the economy. Pre-recession, GDP growth was at about 3.6% at the end of 2007, while unemployment sat around 4.6%. Now, GDP growth is at 1.7% (revised) with unemployment staying comfortable above 8% (if you need more stats, there’s plenty where that came from). Stocks have surged since the recession, but the fundamentals of our economy have only marginally improved [for more economic news and analysis subscribe to our free newsletter].

Posted in Actionable Ideas, Agriculture, Asset Allocation, Commodity ETF Analysis, Commodity ETFs, Commodity Futures, Gold, Precious Metals, Silver | Tagged , , , , | 4 Comments

What You Need to Know About Commodity ETFs, ETNs, and Contango

The introduction of commodity ETPs cracked this volatile asset class wide open. What was once only available to active traders and futures investors can now be accessed by investors of all kinds around the world. Now, something like accessing physical gold bullion is as easy as a couple of clicks of the mouse. But for all that they have done for the commodity industry, there are still a fair amount of misconceptions about ETFs and ETNs that allocate their assets to commodities [for more commodity news and analysis subscribe to our free newsletter].

Posted in Actionable Ideas, Asset Allocation, Commodity ETFs, Commodity Futures, Energy, Gold, Natural Gas, Precious Metals | Tagged , , , | 1 Comment

Commodity ETF Spotlight: USCI In Focus

Many investors looking to add broad-based commodity exposure to their portfolios, ranging from individuals to billion dollar hedge funds, have turned to ETFs as the most efficient vehicle for doing so. While the most popular products are generally those that have the longest operating history, more and more investors are turning to new products that are popping up as a tool for establishing exposure to this potentially promising–and risky–asset class. One of the more innovative commodity ETFs to debut in recent years is the United States Commodity Index Fund (USCI), which is the result of a collaboration between United States Commodity Funds, the firm behind the ultra-popular UNG and USO, and Summerhaven.

Posted in Spotlight | Tagged | 1 Comment
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