Thursday, April 05, 2007

Commodity ETF's

Exchange Traded Funds have just about exhausted themselves covering traditional stock market sectors and are now turning toward commodities as a source of new offerings. Examples of commodity funds are SLV (Silver), IAU (Gold) and GSCI (Commodity Indexed Trust).

Do these commodity ETF's offer some unique trading appeal, especially as diversification models as a tool for stock portfolio management?

I would like to find out, but first, I am in the process of assembling a comprehensive list of commodity-based ETF's or similar securities, with a special interest in any that also trade options. An example would be the VIX index, a stock market index that is based on volatility, not stocks, and offers liquid options as a trading vehicle.

If any of my readers are aware of any such commodity-based funds, with special emphasis on the availability of options for leverage, please share them with me under Comments to this thread. I will keep all of you updated on any progress I make in this new direction.



Anonymous said...

allan, thanks for the heads up a few months ago on ROY. I liked it at 5, wished i'd liked it more when it fell to 4.50, but i'm loving it now. Hope she keeps working. -bh

QQQBall said...

i like PHO - H2O theme.

Anonymous said...

looks like the ride starts again on NNVC!!!

Anonymous said...

Are going to purchase Taylor's software?

Anonymous said...

DBA is an ETF that is 25% CORN BEANS COTTON AND WHEAT.Could be very interesting this crop season if we get dry weather and ethanol demand should limit losses if not.Pat