Special Report: In Search Of The Best Commodity ETF

Published on September 15, 2011 | Updated July 18, 2012

Perhaps more than any other asset class, commodities have been “democratized” in recent years thanks in large part to the tremendous growth of the ETF industry. As dozens of exchange-traded products offering exposure to natural resources have popped up, investors have embraced the combination of the ETF (or ETN) wrapper with an asset class that brings both return enhancement and diversification benefits, but that has historically difficult to access.

The introduction of commodity ETPs has opened up this asset class to investors who previously would have spent significant amounts of time or money (or both) to tap into a corner of the investable universe that has delivered some truly impressive gains over the last several years. And this asset class is now available with all the benefits that come along with the exchange-traded structure, including low expenses, intraday liquidity, and the potential for enhanced tax efficiencies (a topic we cover in depth in this report).

In addition to a robust lineup of resource-specific products, there are now more than a dozen ETPs offering broad-based exposure to multiple commodity families. It’s probably no surprise that the lineup is far from identical; the available funds and notes differ in the composition of the underlying portfolios, roll methodologies, product structure, and a host of other factors.

What may seem like minor details can end up having a huge impact on the risk / return profile realized; as shown in the Facts & Figures section of our report, the performance of these products has been all over the board.

The ETFdb team of analysts assembled this report with the goal of highlighting all the aspects that should be considered when searching for the right commodity ETP, as well as giving our objective reviews of more than a dozen different products in this space. We hope you’ll find the material to be a valuable resource in your research and investing; we welcome any comments or questions on the topic you may have.

Table Of Contents

To navigate to any of these sections, simply click on the links below:

Commodities 101

The Appeal Of Commodities

Commodity ETPs: The Key Factors To Consider

Spot vs. Futures: Understanding The Impact Of Contango

In-Depth Analyst Reports: Broad Commodity ETPs

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