Commodity ETFs invest in physical soft or hard commodities, such as agricultural goods, precious metals and natural resources. The fund could either target a single commodity or track the performance of a broad commodity index in the form of physical storage and derivatives positions. A misconception that investors should be aware of, is that Commodity ETFs do not hold companies that produce, process, and transport commodities such as gold miners or oil companies. Read more...
Commodity ETFs have risen in popularity since they give investors access to these tradable goods without the burden of purchasing futures or other derivative products, not to mention the logistics attached to physical ownership.
Commodity ETFs are considered good candidates for diversification and inflation hedge, they enable investors to profit from the price changes of either a single commodity, or a combination of different commodities in a single trade. They do not however generate any interest or dividends. Commodities prices increased substantially throughout the years with population growth and industrial expansion. Catching a commodity super cycle, where prices boom, could magnify investor returns.
Investing in Commodity ETFs is a macroeconomic play. It’s high maintenance and requires extensive due diligence on the ingredients that affect commodity prices such as supply, demand and geopolitics.
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Price | 3M returns* | ||
|---|---|---|---|
WTI3L | €17.29 | 3M returns* +324.68% | |
BRE3L | €30.09 | 3M returns* +302.37% | |
WTI2L | €39.00 | 3M returns* +183.29% | |
OIL2 | $8.71 | 3M returns* +175.51% | |
BRE2L | €52.80 | 3M returns* +171.99% | |
LPET | $83.17 | 3M returns* +163.23% | |
LOIL | $21.87 | 3M returns* +162.24% | |
HOU | $22.46 | 3M returns* +157.10% | |
00715L | NT$50.93 | 3M returns* +161.99% | |
BWET | $64.76 | 3M returns* +154.17% |