Broad commodity funds allow investors to gain exposure to the price movements of a basket of commodities through futures contracts. Since broad commodity funds hold futures contracts, investors should be aware that the funds are subject to contango or backwardation in the futures market. [Five Things to Know About Commodity ETFs]
Broad commodity ETFs include:
- E-TRACS DJ-UBS Commodity Index Total Return ETF (NYSEArca: DJCI)
- GreenHaven Continuous Commodity Index Fund (NYSEArca: GCC)
- iShares GSCI Commodity-Indexed Trust Fund (NYSEArca: GSG)
- PowerShares DB Commodity Index Tracking Fund (NYSEArca: DBC)
- United States Commodity Index Fund (NYSEArca: USCI)
Commodity ETNs:
- Dow Jones-AIG Commodity Index Total Return ETN (NYSEArca: DJP)
- E-TRACS Constant Maturity Commodity Index ETN (NYSEArca: UCI)
- ELEMENTS Rogers International Commodity Index ETN (NYSEArca: RJI)
- ELEMENTS S&P Commodity Trends Indicator ETN (NYSEArca: LSC)
- Goldman Sachs Commodity Index GSCI Total Return Index ETN (NYSEArca: GSP)
- PowerShares DB Commodity Long ETN (NYSEArca: DPU)
- PowerShares DB Commodity Short ETN (NYSEArca: DDP)
- S&P GSCI Commodity Sector Returns Index ETN (NYSEArca: GSC)
It should be noted that exchange traded notes are unsecured debt obligations subject to the creditworthiness of the issuing bank. If the issuer goes under, investors may lose their principal. [What Are ETNs? – The Truth About Credit Risk]
Inverse and leveraged commodity funds:
- PowerShares DB Commodity Double Long ETN (NYSEArca: DYY)
- PowerShares DB Commodity Double Short ETN (NYSEArca: DEE)
- ProShares Ultra DJ-AIG Commodity ETF (NYSEArca: UCD)
- ProShares UltraShort DJ-AIG Commodity ETF (NYSEArca: CMD)
For more information on commodity funds, visit our commodity ETFs category.
Max Chen contributed to this article.