Beyond DBC: Three Promising Commodity ETF Options

The incredible growth in ETF assets in recent years has come not from the equity corner of the investable asset universe, but from an asset class that generally receives a very minor allocation in long-term portfolios (if any at all). Cash inflows into commodity ETFs in the first half of the year topped $18 billion, accounting for about half of all inflows to exchange-traded products. The explanation for this surge in interest appears to be twofold. Until ETFs burst on to the investing scene, commodities were an asset class utilized primarily by the largest and most sophisticated investors. Because commodity exposure requires either physical storage or ongoing maintenance of a futures-based strategy, there are some logistical (and cost) hurdles involved. But now ETFs offer exposure to everything from corn to sugar to lead, democratizing an entire asset class by bringing it withing reach through a single security. Moreover, the performance of [...] Click here to read the original article on ETFdb.com. Related Stories: Jefferies ETFs: New Options For Commodity Exposure UBS Launches New Commodity ETN What Every Investor Should Know About Commodity ETF Investing