ETF Database » COW

An ETF To “Beef Up” Your Portfolio

Jared Cummans — Tue, 07 Sep 2010 20:58:51 +0000

Commodity ETFs have become tremendously popular in recent years, offering exposure to an asset class that has historically been difficult to access in a cost-efficient manner. While investors seeking to add non-correlated assets to a traditional stock-and-bond portfolio generally gravitate towards funds comprised of a basket of different commodities, a number of more targeted commodity products present an opportunity bet on changes in prices of individual resources–everything from coffee and cocoa to tin and lead. Most of these ETFs can be rather volatile, leading many to shy away. But commodity ETFs can be used to take advantage of some of markets that some believe hold tremendous short-term promise [see also Closer Look At The “Contango Killer” Commodity ETF]. One interesting investable asset is cattle–or more appropriately, cattle futures. Cattle spiked in August, closing close to record highs before retreating somewhat in recent sessions. The rise of this particular commodity’s price [...]

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Which ETFs Would Benefit From Lower Oil Prices?

Jared Cummans — Fri, 02 Jul 2010 14:59:28 +0000

Over the last several years, crude oil prices have taken investors on a wild ride. When the global economy was humming along, prices skyrocketed to a historic high of more than $140 per barrel. But from that peak, the downfall was both swift and severe; prices plummeted to almost $30 a barrel as economies around the world entered into a recession. From there prices surged again, more than doubling as markets recovered in the second half of 2009. The volatility in energy markets has continued into 2010; crude prices have shown big swings this year, as a March sell-off took many investors by surprise. As the calendars turned to July, opinions over the next step for crude are all over the board. Some see $100 oil as a very real possibility, noting continued strong demand from emerging markets and the potential government interactions to drain supply from the market. Others [...]

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Livestock Funds ‘Slaughtering’ Other Agricultural Commodity ETFs

Eric Dutram — Thu, 10 Jun 2010 14:05:06 +0000

With the U.S. dollar soaring as of late on a wave of risk aversion, most commodities, which are usually priced in greenbacks, have suffered greatly as rising local prices have curtailed international demand. This is reflected in the recent performance of the PowerShares DB Agriculture Fund (DBA), the largest and most liquid ETF in the Agricultural Commodities ETFdb Category; DBA is down about 12% this year and about 17% over the past 52 weeks (see the Ten Worst Performing ETFs of 2009).Despite this downtrend trend, one sector of the agricultural commodity category has managed to stay above water thus far in 2010; livestock. Livestock funds, which generally consist of holdings in lean hogs and live cattle, have managed to eek out gains this year despite weakness in virtually every asset class. The reason for this impressive performance is likely twofold. First, lean hog futures have been trending upward as swine [...]

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Warning: Use Caution When Investing In Currency ETFs Of Commodity Dependent Nations

Eric Dutram — Fri, 21 May 2010 14:28:09 +0000

In recent weeks markets have encountered turmoil with prospects for growth around the world being slashed as debt issues in Europe weigh on investors. As investors continue to flee the euro, many are flocking towards the relative safety of the U.S. dollar, further driving up the greenback and dragging down commodity prices. In addition to basic metals, one of the most heavily impacted commodities has been oil, which has plummeted as of late. Traders have seen the price of crude slump from close to $90/bbl. to now down around $70/bbl.–and some see no end to the slide in sight. While this could translate into good news for consumers at the pump, it has been a negative development for oil production firms as well as currencies that are highly dependent on commodities. Generally speaking, when commodity-intensive economies see rising prices for their main exports, the currencies tend to rise as well. [...]

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Three Commodity ETFs In “Anti-Contango”

Michael Johnston — Mon, 22 Mar 2010 09:00:30 +0000

Exchange-traded commodity products have been embraced by investors eager to add an asset class to their portfolio that has historically exhibited a low correlation to stocks and bonds. Commodity ETPs saw more than $30 billion in cash inflows last year as both funds targeting diversified baskets of resources and commodity-specific funds surged in popularity. As the use of exchange-traded commodity products has become more common, investors have become more educated on the nuances of various strategies. While some commodity products physically buy and hold the underlying resources, the majority utilize a futures-based strategy to achieve exposure (see What Every Investor Should Know About Commodity ETF Investing). While futures-based funds exhibit a strong correlation with spot prices of the related commodities, there are other factors that can have a potentially significant impact on overall returns. When futures markets are in contango (i.e., near-dated futures are cheaper than longer-dated contracts), the process [...]

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Warning: Three ETFs That Could Be Crippled By Contango

Michael Johnston — Thu, 04 Mar 2010 14:34:19 +0000

The surge in popularity of ETFs is often credited with bringing buy-and-hold investors a cost-efficient alternative to traditional actively-managed mutual funds. But ETFs are also responsible for bringing several asset classes previously available only to the largest and most sophisticated individuals and institutions within reach of investors on all levels. While this “democratization” of investing is generally a positive development, it does come with some potential pitfalls. The specifics of the exposure to some of these hard-to-access asset classes is available to investors willing to do the research, but it isn’t always quite what those who only do cursory research may imagine. Contango: A Four Letter Word To ETF Investors In many cases, ownership of the underlying asset to which ETFs offer exposure is either impossible (e.g., equity market volatility) or impractical / prohibitively expensive (e.g., crude oil or live cattle). So in many cases, the best way to gain [...]

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What’s In A Name: A Look Inside ETF Tickers

Michael Johnston — Wed, 03 Feb 2010 14:42:04 +0000

Whenever a company prepares for a public offering, executives have been known to spend an inordinate amount of time choosing the combination of letters that will serve as the company’s ticker and often nickname within the investment community. To many, the fixation on selecting the perfect ticker seems like an irrational obsession on par with Patrick Bateman’s affinity for business cards. But there’s some evidence to support the idea that picking a clever ticker can be worth quite a bit of money. An academic study titled “Would A Stock By Any Other Ticker Smell As Sweet?” (PDF) examined the performance of “clever ticker” stocks such as Southwest (LUV), Internet America (GEEK), Lion Country Safari (GRRR), and Explosive Fabricators (BOOM). This study uncovered that between 1984 and 2004, “a portfolio of clever-ticker stocks would have beaten the market by a substantial and statistically significant margin, contradicting the efficient market hypothesis.” Theories [...]

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Ultimate Guide To Agricultural ETFs: Agriculture ETF Investing 101

Michael Johnston — Thu, 14 Jan 2010 21:00:19 +0000

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. Most investors seeking exposure to commodities as protection against inflation focus on gold and oil, two resources that have historically increased in value as inflation rises. But in recent years agricultural commodities have become increasingly popular choices, as increases in population and the scarcity of land create a compelling case for investment. Moreover, because these resources account for a significant portion of most household budgets, investments in agriculture hedge exposure to an [...]

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Ten Worst Performing ETFs Of 2009

Michael Johnston — Tue, 22 Dec 2009 19:06:08 +0000

For most investors, 2009 has been a very good year, with a surge in liquidity leading almost all asset classes to big gains. As many national economies emerged from recession, investors regained their appetite for risk, sending emerging markets funds through the rook (these funds dominated the list of the Top Ten Performing Equity ETFs). But less risky asset classes also jumped in 2009, and the vast majority of exchange-traded products are heading towards the finish line well in the black on the year. But some funds have not been nearly so fortunate. Although this year has been one of the best in recent memory for most investors, several ETFs missed out on the surge and instead posted big losses. Beyond inverse and leveraged ETFs, the ten worst performing ETFs of 2009 include: 10. PowerShares 1-30 Treasury Ladder (PLW) As risk tolerance has returned to the markets this year, many [...]

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ETF Plays For A Falling U.S. Dollar

Michael Johnston — Mon, 02 Nov 2009 08:00:44 +0000

As U.S. equity markets have soared in recent months, the dollar has steadily declined against most of its major rivals, recently falling below the key $1.50 level against the euro for the first time since August of last year. This extended fall has investors wondering if the dollar’s decline reflects temporary volatility, or a long-term trend. Despite the negative connotation, a less valuable currency may not be a negative development for the U.S. economy. But it has nevertheless become a concern for many investors who have begun to seek out ways to hedge against a further decline. Not surprisingly, there are a number of ETFs that offer a way to profit from a falling dollar. Today, we take a look at one of these options: exchange-traded commodity products. To get the rest of the series, be sure to sign up for our free ETF newsletter. Root Of The “Problem” Pinpointing [...]

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ETF Database » COW

An ETF To “Beef Up” Your Portfolio

Related Posts:

Which ETFs Would Benefit From Lower Oil Prices?

Related Posts:

Livestock Funds ‘Slaughtering’ Other Agricultural Commodity ETFs

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Warning: Use Caution When Investing In Currency ETFs Of Commodity Dependent Nations

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Three Commodity ETFs In “Anti-Contango”

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Warning: Three ETFs That Could Be Crippled By Contango

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What’s In A Name: A Look Inside ETF Tickers

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Ultimate Guide To Agricultural ETFs: Agriculture ETF Investing 101

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Ten Worst Performing ETFs Of 2009

Related Posts:

ETF Plays For A Falling U.S. Dollar

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