On the heels of its highly successful platinum, silver, gold and palladium funds, ETF Securities plans to make an even bigger footprint in the United States by launching 18 additional commodity exchange traded funds (ETFs) soon.
ETF Securities has four ETFs available in the United States, but it doesn’t intend to keep it that way for long, reports Jessica Marquez for Investment News. According to Will Rhind, strategic director for ETF Securities, the company wants to expand their offerings to include 18 new commodity-based ETFs. This comes in response to strong investor and adviser demand for commodity investments, which don’t seem to be correlated to the market. [Why Investors Have Gold ETFs on the Brain.]
Rhind says, “The demand for commodities will last as people seek a safe haven that isn’t in the form of paper.” [7 Commodity ETFs You Should Know More About.]
The new ETFs will take a variety of different forms, from long to short, leveraged to non-leveraged, and will offer investment opportunities in an array of commodities such as natural gas, wheat, copper and gold. They will also include funds for silver, platinum and palladium. The latter two will be particularly interesting if auto sales continue to increase. [A Minor Metals ETF May Be Coming Soon.]
Five years ago, the only way the average investor and advisor could get exposure to commodities was through mutual funds or through the stock of a mining company. Those days are clearly a memory that seems to get more distant each day.
ETFs have come a long way. For more stories on ETFs, visit our ETF 101 category.
Sumin Kim contributed to this article.
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.