Commodities exchange traded funds (ETFs) are being recognized by investors as the convenient way to get exposure to these necessities. Before ETFs, one had to open an account just for trading commodities, and then they had to make a decision as to which one. Now, ETFs offer a variety of choices to add to your portfolio. Gary Gordon for ETF Expert reminds us that the world needs stuff like oil, livestock, agriculture, and industrial metals and the need will not disappear. Commodities also offer diversification and low correlation in a portfolio. Commodity investing is not without risk and can be different from equity investing, make sure you understand what you are getting into before jumping in.
Some commodity ETFs include:
- United States Oil Fund (USO)
- Market Vectors Steel ETF (SLX)
- iPath GSCI Total Return Index Fund (GSP)
- streetTRACKS Gold Shares (GLD)
- PowerShares DB Commodity Index Tracking Fund (DBC)
- Market Vectors Agribusiness (MOO)
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.