Remember that word diversification? Well, it applies in
ETFs also. By investing in ETFs that track the broad Commodity indexes as opposed to Commodity specific indexes such as Gold, Oil,
Natural Gas, you will have a portfolio of a group of Commodities and not all of them will be in conflict at the same time.
Some may actually be inverted markets and this offers great pricing at rollovers for the ETFs. You should see how inverted
markets offer lower prices with each succeeding contract. One note of caution about Commodity ETFs: Always read the broker's prospectus and make sure that the ETF is tracking the physical Commodities and that the ETF is not tracking companies related to producing or processing these Commodities.
ETFs that have baskets of Commodities in each:
RJI - Rogers International Commodity
GSG – S&P GSCI Commodity Index
GCC – Green Haven Continuous Commodity Index
DJP – Dow Jones Commodity Index
DBC – Powershares DB Commodity Index
Ltd Commodities
ETFs also. By investing in ETFs that track the broad Commodity indexes as opposed to Commodity specific indexes such as Gold, Oil,
Natural Gas, you will have a portfolio of a group of Commodities and not all of them will be in conflict at the same time.
Some may actually be inverted markets and this offers great pricing at rollovers for the ETFs. You should see how inverted
markets offer lower prices with each succeeding contract. One note of caution about Commodity ETFs: Always read the broker's prospectus and make sure that the ETF is tracking the physical Commodities and that the ETF is not tracking companies related to producing or processing these Commodities.
ETFs that have baskets of Commodities in each:
RJI - Rogers International Commodity
GSG – S&P GSCI Commodity Index
GCC – Green Haven Continuous Commodity Index
DJP – Dow Jones Commodity Index
DBC – Powershares DB Commodity Index
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