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Futures Free Commodity Portfolio Now Available
October 23, 2011 at 10:00 AM EDT
The Futures Free Commodity ETFdb Portfolio is now available to ETFdb Pro members, offering an option for those who wish to construct a portfolio that offers well-rounded exposure across commodities, while at the same time avoiding any futures-based products. This portfolio may appeal to investors who are bullish on the global economic recovery and foresee rising commodity prices, but are wary of using futures-based ETFs to achieve exposure. The Futures Free Commodity ETFdb Portfolio is constructed with several key principles in mind. First and foremost, this portfolio does not hold any futures-based commodity ETPs given the numerous drawbacks associated with such instruments. Many popular commodity products invest in futures contracts, allowing for exposure to resources without taking physical possession. While this approach may appeal to some, we believe it is susceptible to serious nuances, such as contango, which can negatively impact bottom line returns [see How Contango Impacts ETFs]. The other [...] Click here to read the original article on ETFdb.com. Related Posts: No Related Posts
The Futures Free Commodity ETFdb Portfolio is now available to ETFdb Pro members, offering an option for those who wish to construct a portfolio that offers well-rounded exposure across commodities, while at the same time avoiding any futures-based products. This portfolio may appeal to investors who are bullish on the global economic recovery and foresee rising commodity prices, but are wary of using futures-based ETFs to achieve exposure. The Futures Free Commodity ETFdb Portfolio is constructed with several key principles in mind. First and foremost, this portfolio does not hold any futures-based commodity ETPs given the numerous drawbacks associated with such instruments. Many popular commodity products invest in futures contracts, allowing for exposure to resources without taking physical possession. While this approach may appeal to some, we believe it is susceptible to serious nuances, such as contango, which can negatively impact bottom line returns [see How Contango Impacts ETFs]. The other [...]
