Exchange-traded funds offering exposure to Commodity Producers Equities have become a popular tool for those looking to make an indirect play on natural resource prices. These funds offer investors the ability to easily tap into the lucrative commodities market through a diversified basket of companies, while still reaping the cost efficiency benefits associated with the exchange-traded product structure. Investors who wish to access the mining sector have a number of options available at their fingertips; and while these products may appear similar, a closer look under the hood reveals some noteworthy differences [see also Does GLD Really Hold Gold, Or is it a Scam?].
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Teucrium, the Vermont-based firm behind a growing lineup of exchange-traded commodity products, announced today the launch of a new fund targeting agricultural resources. The Teucrium Agriculture Fund (TAGS) will offer equal exposure to the “big 4″ of the agriculture commodity space: sugar, corn, wheat, and soybeans [see also Special Report: In Search Of The Best [...]
The ongoing evolution of the ETF industry has brought forth a host of previously difficult-to-reach asset classes right at the fingertips of mainstream investors. Commodities in particular have attracted serious interest lately as the exchange-traded product structure makes it easy and cost effective to access this corner of the market. The energy segment of the [...]
While most portfolios are dominated by exposure to traditional asset classes such as domestic and international stocks and bonds, the past few years have seen investors gradually expand the universe of investable assets to include commodities and other types of “alternatives.” In part as a result of the surge in the number and availability of [...]
With equity markets on a winning streak, many investors have brushed aside the commodity asset class as it has lagged behind in the new year. Nonetheless, this corner of the market remains abundant with opportunities and the potential to deliver impressive gains for those with a keen eye and a stomach for risk. Industrial metals, and copper [...]
Stocks were mixed on Wednesday as euphoria levels cooled off after markets reacted to worse-than-expected housing market data. Investors fretted over the latest existing home sales report; the February figure came in at $4.59 million, which missed analyst estimates of $4.6 million, and also fell short of the previous reading of $4.63 million. Looking ahead, investors [...]
As far as the majority of the ETF industry is concerned, size is everything. Institutions and financial advisors often have minimum AUM requirements for investing; a pre-screen that many ETFs fail due to their smaller size. Even individual investors are quick to write off a fund with low assets, as they assume its low popularity [...]
Though ETFs may appear as very simple and straightforward investment vehicles, there is a rather complex infrastructure that lies beneath the surface. Under the hood of exchange-traded products is a unique “creation / redemption” mechanism that allows for the number of shares outstanding to fluctuate based on supply and demand. Generally, this mechanism serves a [...]
The bulls ran will on Wall Street as fairly upbeat commentary from the Fed coupled with better-than-expected retail sales data paved the way higher for stocks across the board. The Nasdaq led the way higher, gaining 1.88% on the day, while the Dow Jones Industrial Average lagged behind, although not by much, inching higher by [...]
After evading the headlines for quite a while, Greek debt woes resurfaced earlier in the week, bringing back the cloud of uncertainty looming over the debt burdened currency bloc. With renewed uncertainties came volatile price action and equity markets went for a ride, bringing a halt to euphoria on Wall Street. Despite this bump in [...]
The vast majority of the more than 1,400 ETFs now available are pretty straightforward; most investors can pretty quickly grasp the investment objectives based on a quick glance at the name and holdings. There are, however, some ETFs that investors do not understand well at all–products that are actually quite different from the perceptions that many [...]
