S&P Launches Commodities and Natural Resource Indexes, Perhaps ETFs For Them Will Follow

May 30, 2008 at 1:00 am by Tom Lydon

Leedsathenscows103 Standard & Poor’s has launched two new indexes which may someday give exchange traded fund (ETF) investors a benchmark with some more exposure to commodities and natural resources.

The S&P Global Natural Resources Index provides diversified and liquid exposure to the primary commodity sectors of energy, agribusiness, and metals and mining. ETF Express reports that each sector has two clusters: oil and coal; agriculture and livestock; and precious and industrial metals. The index gives exposure to the 60 largest companies across these clusters.

The S&P PMI Commodities and Resources Index provides a broader coverage of larger, capitalized stocks from the energy, agribusiness and metals and mining sectors.

Perhaps someday there will be an ETF product based on these indexes. Meanwhile, there are plenty of ways to gain exposure to the agriculture and commodities sectors, including:

  • Unites States Natural Gas Fund (UNG): tracks natural gas futures; up 56.9% year-to-date
  • PowerShares DB Energy Fund (DBE): holds crude oil, natural gas, heating oil; up 43.6% year-to-date
  • PowerShares DB Base Metals fund (DBB): aluminum, copper, zinc; up 11.5% year-to-date
  • iShares GSCI Commodity-Indexed Trust (GSG): natural resources; up 31.8% year-to-date

Z_5

Tags | , , , , , , , , ,

Subscribe

Enter your e-mail address below to sign up for our free e-mail newsletter, the Daily Market Update. We will never share your e-mail address with third parties.

Leave a Reply

    • Anonymous: Isn’t this type of strategy inappropriate for a long term investor? It may be appropriate for people...
    • Mike Havrilla: Still some companies holding up in the metal and mineral mining industry - 30 of the 78 companies in...
    • Mike Havrilla: Updated Global AnimalBiz Index as of 9/4/08 at: http://www.etfrx.com/2008/0...
    • Tom Lydon: Hi Berchta, You’re absolutely right that with any bond, there are many factors that must be...
    • BERCHTA DALE: Out of many methods you can invest your money Municipal Bonds happen to be one of the famous. However...

Recent Podcast

Tom Lydon Talks About New Frontiers for ETFs

 
 Tom Lydon Talks About New Frontiers for ETFs: Play Now | Play in Popup | Download