Commodities For Dummies, 3rd Edition

Chapter 24

Top Ten Commodity ETFs

IN THIS CHAPTER

Considering pros and cons of ETF investing

Looking for broad-based commodity exposure

Adding in commodity-specific exposure

Exchange-traded funds (ETFs) are a relative newcomer in the asset-management product space. ETFs have become extremely popular with investors, especially individual investors, because of their relative ease-of-use and the type of exposure they can offer. With ETFs, you can access investment products that were once only the purview of expert industry insiders.

Because ETFs are now in a position to offer easy access to commodities, and because the number and type of commodities they cover has expanded, you can benefit from seeing which ETFs are out there to help with your investment needs. In this chapter, I cover a broad range of top ETFs and the type of exposure they can provide.

PowerShares DB Commodity Index

The DB Commodity Index (NYSE: DBC) was the first ETF of its kind to track a commodity index. It tracks the performance of the index with the same name, a product courtesy of Deutsche Bank. This ETF gives you broad exposure to this index, which holds several of the most liquid commodities traded in the ...