How Balanced Is Your Commodity ETF?

As natural resource prices have climbed skyward, interest in exchange-traded products that offer exposure to commodities has accelerated as well. While some investors prefer to achieve targeted access through resource-specific funds–such as those focusing on corn (CORN), sugar (SGG), or copper (JJC)–the most popular commodity ETPs are those that include a variety of types of resources. There are currently about a dozen products in the Commodities ETFdb Category, a group that includes ETPs targeting multiple types of commodities. And while these products are similar in that they employ a broad-based technique to delivering commodity exposure, they are far from identical. The commodity asset class can generally be divided up into five separate sub-sectors: energy, agriculture, industrial metals, precious metals, and livestock. Each of these groupings offers unique risk/return profiles; precious metals may have appeal as safe havens, while industrial metals tend to move in unison with global demand for raw [...] Click here to read the original article on ETFdb.com. Related Posts: Ten Commodity ETFs Every Investor Should Know (But Most Don’t) Definitive Guide To Coffee ETFs: Coffee ETF Investing 101 ETF Plays For A Falling U.S. Dollar UBS Launches New Commodity ETN All-ETF Portfolio For Cheapskate Investors: How Low Can We Go?