Over the long-term, fundamental factors may continue to support higher cocoa prices. For instance, demand for cocoa is rising at a long-term rate of 2% per annum, according to Mineweb. Urbanization and the rising middle class in developing economies has bolstered global demand for chocolate. Additionally, Ghana, a major producer of cocoa, is expected to see a decline in arable land as the region converts to gold mining.

Investors should also note CHOC and NIB are small.

“This presents two problems. First, larger ETFs can take advantage of economies of scale, and pass on some of those efficiencies to shareholders in the form of lower costs. Smaller ETFs, with no such advantage, may need to charge more to pay for operating and administrative costs,” adds Consumer Reports.

iPath Bloomberg Cocoa TR Sub-Index ETN