Chapter 2

Adding Commodities to Your Portfolio

In This Chapter

arrow Gaining exposure to commodities in a variety of ways

arrow Investigating exchanges around the world

arrow Placing orders at the exchange

The goal of this chapter is to help you figure out how much of your portfolio you should devote to commodities and introduce you to the vehicles that let you invest in them — from mutual funds to master limited partnerships. If you've ever wondered how to get commodities into your portfolio, you can't afford to skip this chapter!

tip.eps Many investors who like the way commodities anchor their portfolios have about 15 percent exposure to commodities. But if you're new to commodities, start out with a relatively modest amount, anywhere between 3 and 5 percent, to see how comfortable you feel with this new member of your financial family. Test out how commodities contribute to your overall portfolio's performance. If you're satisfied with what you see, gradually increase the percentage.

Checking Out Methods for Investing in Commodities

You have several methods at your disposal, both direct and indirect, ...

Get High-Powered Investing All-in-One For Dummies, 2nd Edition now with the O’Reilly learning platform.

O’Reilly members experience live online training, plus books, videos, and digital content from nearly 200 publishers.