Rethinking Commodity ETFs

The ETF industry has gained the momentum of a runaway freight train in recent years, raking in billions of dollars every month as more and more investors embrace the benefits of the exchange-traded structure. Over the last 20 months or so, the commodity ETF space has been the engine of that train, accounting for a significant portion of new industry assets. In 2009, commodity ETFs took in more than $30 billion as dozens of new funds popped up and grew rapidly. That pace has slowed considerably in 2010, but commodity ETFs are still a major driver of the surge in ETF assets (through July, cash inflows stood at about $6 billion). The tremendous interest in exchange-traded commodity products is relatively easy to explain. Prior to the launch of these products, many investors did not have a cheap, efficient means of tapping into the asset class. There are of course the [...] Click here to read the original article on ETFdb.com. Related Stories: What Every Investor Should Know About Commodity ETF Investing Ten Commodity ETFs Every Investor Should Know (But Most Don’t) Commodity ETFs: Know What You’re Getting Yourself Into