For broad commodities exposure, the GreenHaven Continuous Commodity Index Fund (NYSEArca: GCC) follows an equal-weight methodology that covers 17 commodity positions. In addition, the PowerShares DB Commodity Index Tracking Fund (NYSEArca: DBC), the largest commodity-related ETF, tracks a broad basket of the 14 most heavily traded commodities and uses an optimum yield methodology that tries to limit the negative effects of contango.
The ETFS Physical Precious Metals Basket Shares (NYSEArca: GLTR) provides broad exposure to precious metals, including gold, silver, platinum and palladium bullion. The SPDR Gold Shares (NYSEArca: GLD) and iShares Silver Trust (NYSEArca: SLV) are the two largest U.S.-listed gold and silver ETFs. [Asian Demand to Buff Tarnished Gold ETFs]
Lastly, the ALPS Alerian MLP ETF (NYSEArca: AMLP) and JPMorgan Alerian MLP Index ETN (NYSEArca: AMJ) are the two largest MLP-related exchange traded products on the market, and both track the Alerian MLP Index. Unlike other energy sector stocks, MLPs primarily deal with distribution and storage of energy products, so their business model is less reliant on the commodities market since MLPs profit off the quantity of oil and natural gas they are able to move around. [Another Big Year of MLP ETF Inflows]
“From a diversification standpoint, real asset investments are quite different than what you’re going to get in a traditional long-only stock or bond fund,” Todd Rosenbluth, director of mutual fund research at S&P Capital IQ, said in the article. “The beauty of these is that they are not related, and you want to consider some places that haven’t done as well to make sure you’re properly diversified.”
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Max Chen contributed to this article.