Warning: Commodity Surge Could Sink Consumer Staples ETFs

As the value of the U.S. dollar continues to slide, many investors have embraced commodities as an opportunity for generating solid returns in an uncertain environment. ETNs and ETFs tracking various commodities have performed extremely well over the past few months, as concerns over QE have combined with ongoing supply worries in a variety of important commodities to send many products surging higher. For example, the iPath Dow Jones-UBS Coffee ETN (JO) is up more than 50% over the past 26 weeks, while the iPath Dow Jones-UBS Sugar ETN (SGG) has roared higher by a whopping 140% in the same time period. While this commodity surge has been great news for those who have invested in the sector, consumer staple companies are likely cringing at the thought of higher input prices. This is especially true given the current state of the economy, with 9.6% unemployment and extremely weak consumer confidence that [...] Click here to read the original article on ETFdb.com. Related Stories: Warning: Use Caution When Investing In Currency ETFs Of Commodity Dependent Nations Consumer Discretionary ETFs Surge on Confidence News Wednesday’s ETF To Watch: Consumer Staples Fund (XLP)