Avoid the Shotgun Approach for Commodity ETNs Next Year
December 30th at 1:00pm by Tom Lydon
2007 has been a hot year for investors who put their money into commodities and related exchange traded funds (ETFs).
Crude oil surged 44% and wheat has almost doubled during the year, reports Mike Burnick at Burnick’s Global Market Beat. The fast-growing ETF industry has given investors of all walks the opportunity to zone in on some specific sub-sectors of the market, helping reap some significant gains through the exchange traded note (ETN).
For 2008, look to some of these ETNs for potential growth:
- iPath Dow Jones AIG Grains Total Return Sub-Index ETN (JJG) gives exposure to soft commodities like wheat, corn and soybeans.
- iPath Dow Jones AIG Livestock Total return Sub-Index ETN (COW) Cattle and lean hogs are tracked
- iPath Dow Jones AIG Natural Gas ETN (GAZ) natural gas prices should be set to rally after these cold spells.
