COMMODITY ETF

A list of ETFs for May 2021

Investing in physical commodities is quite promising. Agricultural goods, natural resources, and even precious metals have a high value. If you want to invest in such things, Commodity ETF may be a thing for you.

Let's get into it!

What is a Commodity ETF?

As its name suggests, a commodity ETF is an ETF invested in physical commodities. The usual things it includes are natural resources, agricultural goods, and precious metals.

A commodity ETF usually focuses on a single type of commodity. It is usually investments related to futuristic contracts. Or, it can be a single commodity that concerns physical storage.

Commodity ETFs track the general performance of a commodity index. It includes several individual commodities through derivatives position and physical storage.

If you plan to invest in Commodity ETF, you may not own a physical commodity. However, you can have a set of contracts backed by such.

What is the best Commodity ETF?

The market has an array of Commodity ETFs to choose from if you plan on investing in this ETF. There's no telling which is the best, but the list below filters out your best options if you plan on going for this ETF.

  • Aberdeen Standard Physical Silver Shares ETF (SIVR)
  • Aberdeen Standard Physical Palladium Shares ETF(PALL)
  • SPDR Gold MiniShares Trust (GLDM)
  • United States Copper Index Fund(CPER)

As an investor, it would be on you to choose the best Bond ETF. In general, the best one should be the company that suits your preferences.

Is Commodity ETF a good investment?

Commodity ETFs are good ways to invest since it allows investors to gain commodity exposure. The commodity funds often create their benchmark indexes.

This ETF is quite popular since they give investors exposure to commodities. It won't ask you to have an in-depth understanding of buying futures or other derivatives.

Investing in commodities is like having shares in natural resources such as oil, gas, and precious metals.