ETF Database » Commodity ETFs

101 ETF Lessons Every Financial Advisor Should Learn

Michael Johnston — Wed, 23 May 2012 12:00:06 +0000

Exchange-traded funds (ETFs) have burst on to the scene in the last few years, raking in hundreds of billions of dollars in assets and prompting a major shift towards indexing strategies in the process. ETFs have empowered financial advisors (FAs), registered investment advisors (RIAs), Chief Financial Officers (CFOs), money managers, and retail investors to take greater control over their portfolios, pushing down fees and maxing out tax efficiency in the process. While ETFs appear quite simple on the surface, these securities can be quite complex. In order to get the most out of ETFs, there’s a lot that investors need to know about the structure, opportunities, and limitations of these securities. Below we outline just about everything you need to know about ETFs, from the basics to the more sophisticated aspects of these products. 1. ETFs Are Tax Efficient One of the biggest advantages of ETFs is their tax-efficient structure; [...]

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How To Find The Best Gold Miner ETF

Michael Johnston — Wed, 16 May 2012 11:00:13 +0000

In recent years ETFs have become popular tools for pursuing a wide range of investment objectives. As the product lineup has become more granular in nature, investors have turned to exchange-traded products as a way to tap into narrow segments of the global stock market; the current product offerings include a number of funds that zero in on very specific industries. Gold mining stocks have been the target of growing interest in recent years, as investors have sought out ways to play precious metals. And in many cases, those seeking out gold miner stocks are using the exchange-traded structure to get there; currently, there is more than $7 billion invested in gold miner ETFs. Gold Miner ETFs 101 Gold mining stocks generally appeal to those looking to increase their allocation to gold, but are interested in doing so through securities that generate cash flows. Whereas a bar of gold bullion will [...]

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Have Gold ETFs Lost Their Luster?

Jared Cummans — Tue, 08 May 2012 11:00:57 +0000

In recent years, gold has become arguably the most popular commodity from an investing perspective, and with good reason. Gold and the funds that track it have provided some massive returns for traders and investors all around the globe. But that popularity got especially heated in 2010 and the first half of 2011, as gold featured a meteoric rise to eclipse the $1,900 /oz. level with the financial world buzzing about what appeared to be the best investment at the time [see also Three Reasons Why Gold Is Overvalued]. It was because of this rise that gold became something of a speculative tool for traders, as they used it to hedge against equity losses. And for 2011, it worked quite well. Last year, the SPDR Gold Trust (GLD) featured a correlation of -0.64 to the S&P 500 partly due to the number of investors using it as a trading instrument. [...]

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Easy As 2-4-6: UBS Launches New Commodity ETN (BLND)

Michael Johnston — Fri, 27 Apr 2012 13:00:54 +0000

UBS, one of the largest issuers of ETNs including a number of commodity products, is the latest to make an addition to the fast-growing ETP lineup. The new ETRACS DJ-UBS Commodity Index 2-4-6 Blended Futures ETN (BLND) will take a unique approach to delivering exposure to commodity futures. The underlying Dow Jones-UBS Commodity Index 2-4-6 Forward Blend Total Return consists of futures contracts diversified across multiple maturities–specifically two, four, and six months out. Those three maturities will be equally weighted [see also Five Questions To Ask When Buying An ETF]. Spreading exposure across the maturity curve could potentially reduce the adverse impact of “roll yield” close to spot, which can result from contango in futures markets, while still offering exposure to a diversified basket of natural resources futures contracts. The potential trade-off could come in the form of reduced sensitivity to changes in spot prices; the further down the curve [...]

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ETPs For Trading Natural Gas

Jared Cummans — Thu, 19 Apr 2012 13:00:10 +0000

Natural gas has been one of the most frustrating commodities this year, as investors have attempted to call its bottom again and again, only to watch it fall to new lows. NG futures have sank by more than 35% this year, as a warm winter coupled with large deposits of the resource have put major pressure on prices. As such, most investors have abandoned their NG positions, as it is wildly unpredictable and extremely volatile, but it is these current behaviors that presents a juicy opportunity [see also 25 Ways To Invest In Natural Gas]. Traders often seek volatile funds as they have the potential to provide massive returns in a very short period of time. Of course, they can also lead to excruciating losses when positions turn sour. But when it comes to natural gas, futures contracts can be especially dangerous and are typically outside of the realm of your average investor. Enter ETFs. There [...]

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USCF Debuts Agriculture ETF (USAG)

Michael Johnston — Fri, 13 Apr 2012 13:00:58 +0000

United States Commodity Funds rolled out another addition to its suite of “third generation” commodity ETPs this week, debuting a fund that will take a unique approach to delivering access to agriculture commodities. The United States Agriculture Index Fund (USAG) will implement a variation of the methodology used by USCI, dubbed the “contango killer” commodity ETF, that debuted in 2010 and has accumulated about $400 million in assets. Instead of maintaining static weights to various agricultural commodities, USAG will seek to replicate an index that shifts exposures based on current market conditions [see Free Report: Everything You Need To Know About Commodity ETFs]. Under The Hood USAG will seek to replicate the SummerHaven Agriculture Index Total Return, a benchmark that consists of fourteen agricultural commodities: soybeans, corn, soft red winter wheat, hard red winter wheat, soybean oil, soybean meal, canola, sugar, cocoa, coffee, cotton, live cattle, feeder cattle and lean hogs [see [...]

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Which Fundamentals Are Driving Gold ETFs?

Stoyan Bojinov — Thu, 12 Apr 2012 11:00:42 +0000

With equity markets charging (generally) higher since the start of 2012, it’s no wonder that gold has been largely off the radar for many investors. Despite evading news headlines over the past few months, speculation over where the precious yellow metal is headed has not died down one bit. Given the impressive bull-run on Wall Street coupled with looming worries surrounding the health of the economic recovery, the fundamental price drivers of gold may be sending conflicting signals of where the metal is likely headed in the foreseeable future [see also Seven Reasons To Hate Gold As An Investment]. Before diving into any fundamental analysis, it helps to take a step back and consider the “big picture” so to speak. First and foremost, it’s important to consider the fact that gold is by all means still in a long-term bull market; the recent selling pressures and price volatility that the precious metal has faced are [...]

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Wednesday’s ETF Chart To Watch: Global X Aluminum ETF (ALUM)

Stoyan Bojinov — Wed, 11 Apr 2012 08:00:35 +0000

Equity markets turned south on Tuesday as pre-earnings jitters coupled with resurfacing Euro zone debt woes paved the way for selling pressures. Stocks in the overseas currency bloc plunged as Spanish and Italian government bond yields surged, reminding investors of the looming debt drama. Amidst the volatility on Wall Street, demand for safe haven assets climbed, bolstering gold higher; futures prices for the precious yellow metal jumped over a full percentage point on the day, settling near $1,660 an ounce as the trading session drew to a close [see Free Report: Everything You Need To Know About Commodity ETFs]. With no major economic data releases, investors will turn their attention to corporate earnings season which kicked off yesterday after the closing bell with Alcoa (AA). Investors will react to the latest quarterly performance results from the leading aluminium producer, which makes the Global X Aluminum ETF (ALUM) our chart to watch for [...]

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The Best Gold ETF…Isn’t An ETF

Michael Johnston — Mon, 09 Apr 2012 13:00:11 +0000

As interest in gold as an investable asset has increased in recent years, more and more investors looking to gain exposure to the precious metal are turning to exchange-traded products. U.S.-listed gold ETPs now have assets in excess of $80 billion, representing a material portion of the total industry. Gold ETPs have generally performed very well over the past five years; prices of the metal have climbed steadily higher, and the stellar performance has no doubt been one of the substantial drivers of interest in this asset class [see also Does GLD Really Hold Gold, Or is it a Scam?]. For investors looking to purchase a gold ETP, there is no shortage of options; several different products allow cheap, easy access. While these products are generally similar, there are nuances to each that can impact the returns realized. And this is one case where bigger isn’t always better; some of [...]

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Daily ETF Roundup: GLD Gains On Market Fears, UNG Slips On High Supplies

Jared Cummans — Thu, 05 Apr 2012 21:39:37 +0000

Stocks finished the day off relatively flat as the S&P 500 posted its worst week of the year, granted markets are closed tomorrow in observance of Good Friday. After shying away for several weeks, European fears heated up again on the day as investors worry over the mounting debts and solvency of varying regions of the euro-zone. In particular the issue stemmed from Spain as their debts “continued to march higher and its equity market plumbed lows not seen since the height of the euro zone’s crisis last year” writes Reuters. The day saw the Dow surrender 14 points while the S&P lost by about 0.1% [see also 4 Sector ETFs Up Over 20% YTD]. Crude oil finally had a strong day, as the fossil fuel has been slipping in recent sessions. Many are hoping for a relief in gas prices, as the U.S. is currently plagued with big numbers at [...]

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ETF Database » Commodity ETFs

101 ETF Lessons Every Financial Advisor Should Learn

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How To Find The Best Gold Miner ETF

Related Posts:

Have Gold ETFs Lost Their Luster?

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Easy As 2-4-6: UBS Launches New Commodity ETN (BLND)

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ETPs For Trading Natural Gas

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USCF Debuts Agriculture ETF (USAG)

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Which Fundamentals Are Driving Gold ETFs?

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Wednesday’s ETF Chart To Watch: Global X Aluminum ETF (ALUM)

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The Best Gold ETF…Isn’t An ETF

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Daily ETF Roundup: GLD Gains On Market Fears, UNG Slips On High Supplies

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