Saturday, October 1, 2011

Commodity ETF - Your Best Options and Strategies

It's no secret that there is a boom going on in the commodities market right now. The best way to profit from this boom is through Commodity ETF ownership.

With the rapid growth of ETF vehicles over the past few years, there are many options open to investors wishing to gain exposure to commodities. Below is a listing of many ways to add commodities exposure to your portfolio:

Commodity

DBC - Commodity Index Fund DBA - Agriculture Fund DBB - Base Metals Fund DBE - Energy Fund DBO - Oil Fund DBP - Precious Metals Fund DBS - Silver Fund DGL - Gold Fund PHO - Water Resources

As you can see, there are ETF funds for specific segments within the commodity group. You also have the option of owning a broader Commodity ETF in DBC.

There are many strategies and tactics for profiting from the commodities market. Almost any strategy can be followed using the Commodity ETFs listed above.

Learn the basics of these funds before buying. Spend a little time researching these commodity etf funds further and you're sure to find one that suits your investment needs.

Investing through ETFs has many benefits. ETF fund holdings are diversified within the industry in which it invests (like a mutual fund). The most beneficial difference between ETFs and mutual funds is that ETFs are much cheaper to own (~.5% compared to ~1.5%) and they can be bought and sold at anytime (like a stock). For this reason, many investors are beginning to use ETFs as their primary investment vehicle.

Don't let the commodity boom pass you buy. Commodity ETF funds make it easy on the average investor to profit.

Commodity ETF - Your Best Options and Strategies

1 comment:

  1. Wow, great article, I really appreciate your thought process and having it explained properly, thank you!


    Commodity options

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