Commodity ETFs Hot Streak | ETF Trends

As a consumer, the commodities boom can make you feel pinched, but the bull market of raw materials could be an investment opportunity with exchange traded funds (ETFs).

So why and how do you incorporate commodities into your portfolio? Brian O’Keefe for Forbes reports that adding commodities to your portfolio mix is a way to offset inflation. A growing number of planners and advisors are putting 5-10% of a portfolio into commodities. It’s a new wave and it’s not overly aggressive to propose a 10% allocation at this point. It’s very easy to build a well-rounded portfolio with two or three ETFs.

Some ETFs for a foundation are:

  • PowerShares DB Commodity Index Tracking Fund (DBC)
  • S&P GSCI Commodity Index (GSG)
  • iPath Dow Jones AIG Commodity Index Total Return (DJP)

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.