The Best Commodity Investment Tool: ETFs vs. Futures

The world’s largest commodity ETF, DBC , has fallen 18.4% YTD and at $15.04 per share, is now trading well under its 2009 low of $19.11. Commodities across the board have taken a hard hit recently as economies across the globe have slowed. The Chinese economy is slowing, developed country imports are falling, and OPEC is flooding the oil markets with crude. These situations have driven commodity prices down to historically low levels and investors have taken notice. True “sales” are hard to come by in global finance, but the commodities market is currently offering a “firesale”. Prices are so low that even long-term value investors can make a case to diversify into commodities and hold long term, with the intent of reaping large gains if prices return to just production breakevens.