Following the massive injections into capital markets in recent years, inflation has become a major concern of many investors, and the quest to uncover assets that offer portfolio protection against a potential uptick in the CPI has taken on many forms. While inflation-protected bonds are the instrument of choice for some, others have turned their attention to commodities, hoping that the addition of hard assets to a portfolio will reduce overall volatility and provide a hedge against inflation. [click to continue…]
To most, cotton is a part of everyday life, a part of the textiles found in every wardrobe. But after prices surged in 2009, some investors have begun making cotton a part of their portfolio as well, and are turning to cotton ETFs as a way to gain exposure. While this soft commodity has the potential to deliver big gains and add diversification benefits, it comes with a fair amount of risk as well. And while exchange-traded products are the best way for many investors to gain exposure to this commodity, these products feature some nuances that should be considered before investing. [click to continue…]
Perhaps you’ve noticed that many of the investment vehicles in the ETF industry are technically referred to as exchange-traded notes, or ETNs. While ETNs are similar to ETFs in many ways, there are also some key differences that should be considered before investing.
