Are you looking to expand your investment horizons? Here are some commodity and natural resource exchange traded notes (ETNs) and exchange traded funds (ETFs) that you may not know about.
Be sure to note the differences between ETFs and ETNs.
The cocoa ETN iPath DJ AIG Cocoa TR Sub-Idx ETN (NIB), currently down 13.6% year-to-date, tries to track the returns available through unleveraged investment in the futures contracts on the commodity from the index along with the rate of interest that could be earned on cash collateral invested in certain Treasury Bills. Cocoa demand has been down, with futures recently losing 3.9% as early speculative buying disappeared, reports Tom Sellen for The Wall Street Journal. Cocoa now goes for $2,353 a metric ton.
The cotton ETN iPath DJ AIG Cotton TR Sub-Idx ETN (BAL), currently up 15% year-to-date, seeks to reflect returns available through unleveraged investment in the futures contracts on the physical commodity from the index as well as the rate of interest that is potentially earned on cash collateral invested in certain Treasury Bills. According to Forrest Laws at the Farm Press, the cotton market is “biding its time” and futures are steadily climbing and could hit the high 60-cent range by December. Growers are worried about excessive rain in the Cotton Belt, which has delayed planting.
The coffee ETN iPath DJ AIG Coffee TR Sub-Idx ETN (JO), currently up 15% year-to-date, tries to mirror the returns available through unleveraged investment in the futures contracts on the commodity from the index along with the rate of interest that may be earned on collateral invested in specific Treasury Bills. Coffee prices could face a price spike and demand is on the rise, the Press Association says. Bad weather has led to a shortage of Colombian Arabica.
The carbon market ETN AirShares EU Carbon Allowances (ASO), currently down 4.4% year-to-date, intends to reflect the performance of a basket of exchange-traded futures contracts for European Union Allowances, which is an entitlement to produce 1 metric tonne of carbon dioxide that is transferable in accordance to the European Union Greenhouse Gas Emissions Trading Scheme.