Commodity ETF Investing: Four Strategies For Fighting Contango

As the ETF industry has grown and evolved, the product lineup has become increasingly sophisticated. Many of the products now hitting the market are designed to address issues posed by earlier indexed products, as issuers strive to devise new strategies for accessing both traditional and exotic asset classes. A number of issuers, led by Schwab and Vanguard, have lowered costs on stock and bond funds, seeking to attract cost-conscious investors. Last week, Rydex rolled out a suite of equal-weighted equity ETFs that many investors believe are a more appealing option than cap-weighted funds. And in the commodity space, a number of issuers have introduced products that seek to address what some perceive as an oversized impact of contango on fund returns. Contango occurs when longer-dated futures contracts are more expensive than those that are approaching expiration; in other words, the futures curve is upward-sloping. This may be the result of [...] Click here to read the original article on ETFdb.com. Related Stories: Three Commodity ETFs In “Anti-Contango” Closer Look At The “Contango Killer” Commodity ETF What Every Investor Should Know About Commodity ETF Investing