ETF Trends
ETF Trends

While the spike in commodity prices may pinch your wallet, commodity exchange traded funds (ETFs) are positioned to benefit from the rising cost of raw materials.

Since so many commodities go into the products we buy every single day, commodity prices factor greatly into how much we pay. Commodities are especially critical now because demand for them has only grown. It’s no longer developed economies demanding them; emerging economies are growing and demanding them, too, reports Tim Begany for Investopedia . [Sugar, Coffee and Cocoa ETNs Rally On Fundamentals.]

We have seen a massive increase in the price of gold and other commodities over the last few months with investors looking for “safe havens” – a trend that may continue. The main focus is the great demand in the near and medium term for precious metals, as food prices an agriculture prices are going to spike, reports Financial Advice.
Recent research suggests that pork bellies, coffee and crude oil have a place in individual portfolios alongside stocks, bonds and cash. Tim Gray for The New York Times reports that commodity funds are scooping up money at a time when stocks have often been stumbling along and bonds are offering skimpy yields. [Commodity ETFs Lead The Charge Early.]
This year through September, investors plowed $18.3 billion into commodity offerings, versus $11.9 billion for the first nine months of 2009, EPFR said. The numbers are simply expected to grow, as equities see outflows in the near term.
To see all the commodity ETFs you have at your disposal, visit the ETF Analyzer. To be alerted to trading opportunities in commodity ETFs, sign up for our alerts!

Tisha Guerrero 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.