Jim Rogers & Commodity ETFs

Noted investor and author Jim Rogers says index-based commodity ETFs will be an easy-to-use strategy for investors to profit from supply shortages in natural resources combined with easy monetary policies from central banks around the world.

Speaking Wednesday at the 2013 ETF Virtual Summit, Rogers pointed out that world governments have gotten to the habit of printing money in the wake of the financial crisis.  [Jim Rogers: Use Commodity ETFs to Profit from Supply Shortages]

There are several exchange traded products based on commodity indices designed by Rogers.

For example, Royal Bank of Scotland issues a family of exchange traded notes tied to the benchmarks, including RBS Rogers Enhanced Agriculture ETN (NYSEArca: RGRA) and RBS Rogers Enhanced Commodity Index ETN (NYSEArca: RGRC).

Also, Van Eck manages the Market Vectors RVE Hard Assets Producers ETF (NYSEArca: HAP), which tracks an index developed with Rogers.

Rogers noted that the new Japanese Prime Minister, Shinzo Abe, won his election on promises to increase quantitative easing to jumpstart the stagnating economy. Consequently, the Japanese yen has been depreciating and Japanese equities have been rallying on the optimistic outlook. [Currency ETFs: Everyone Hates the Japanese Yen]

  • CurrencyShares Japanese Yen Trust (NYSEArca: FXY)
  • iShares MSCI Japan Index Fund (NYSEArca: EWJ)
  • WisdomTree Japan Hedged Equity Fund (NYSEArca: DXJ)
  • db-X MSCI Currency Hedge Equity Fund (NYSEArca: DBJP)

It all may sound good and feel good to investors, “but by the end of 2013, all this will be wearing off,” Rogers warned. “We will see serious problems and ramifications down the road.” [PIMCO Total Return ETF’s Bill Gross: Stimulus ‘Increasingly Ineffective’]