Even the most focused investors know that the best way to defend their portfolio against risk is to diversify their assets. This is even more true for commodity ETF investors, where too often funds claim to be “diversified” but still have upwards of 70% of their total assets allocated to a specific commodity. Oil and gas are the most prevalent offenders of this rule, both of which can be extremely volatile and should only be invested in by those who have the ability to frequently monitor their positions and have a full understanding of the two commodities. Investors who are looking for more balanced exposure should always take the time to take a close look at an ETF’s holdings to see just how “diversified” the fund really is [for more ETF analysis subscribe to our free newsletter]. To avoid investing in funds with heavy tilts towards big oil, we have outlined 3 ETFs that [...] Click here to read the original article on ETFdb.com. Related Posts: Ultimate Guide To “Third Generation” Commodity ETPs How Balanced Is Your Commodity ETF? Ten Commodity ETFs Every Investor Should Know (But Most Don’t) Highlighting 5 Popular ETNs 101 ETF Lessons Every Financial Advisor Should Learn
Even the most focused investors know that the best way to defend their portfolio against risk is to diversify their assets. This is even more true for commodity ETF investors, where too often funds claim to be “diversified” but still have upwards of 70% of their total assets allocated to a specific commodity. Oil and gas are the most prevalent offenders of this rule, both of which can be extremely volatile and should only be invested in by those who have the ability to frequently monitor their positions and have a full understanding of the two commodities. Investors who are looking for more balanced exposure should always take the time to take a close look at an ETF’s holdings to see just how “diversified” the fund really is [for more ETF analysis subscribe to our free newsletter]. To avoid investing in funds with heavy tilts towards big oil, we have outlined 3 ETFs that [...]
Click here to read the original article on ETFdb.com.
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