August 08, 2012 at 07:00 AM EDT
Huge Gaps Between Metals, Miners ETFs
In recent years interest in exposure to natural resources has surged, thanks perhaps in part to the ease of access afforded by the exchange-traded structure. While commodities have always been popular with active traders, they’ve caught on in recent years among those investors with a longer time horizon. The impressive performances turned in during a bull commodity market have highlighted the potential of this asset class, while the low correlations to stocks and bonds have been enticing as well [see also 5 Equity ETFs In Steady Uptrends]. While physically-backed and futures-based products that offer direct exposure to commodities remain extremely popular, many investors have also embraced ETFs that deliver indirect exposure to natural resources through stocks of the companies that are engaged in the extraction and production of the resources. The idea behind this approach is pretty straightforward: because the profitability of mining companies depends in large part on the [...] Click here to read the original article on ETFdb.com. Related Posts: Precious Metal ETFs: Physical vs. Equity Exposure Playing Precious Metals Through Equity ETFs Inflation-Fighting ETFs Back In Focus Do You Need A “Pure” Gold Miners ETF? Commodity ETFs Get No Love From Investors
In recent years interest in exposure to natural resources has surged, thanks perhaps in part to the ease of access afforded by the exchange-traded structure. While commodities have always been popular with active traders, they’ve caught on in recent years among those investors with a longer time horizon. The impressive performances turned in during a bull commodity market have highlighted the potential of this asset class, while the low correlations to stocks and bonds have been enticing as well [see also 5 Equity ETFs In Steady Uptrends]. While physically-backed and futures-based products that offer direct exposure to commodities remain extremely popular, many investors have also embraced ETFs that deliver indirect exposure to natural resources through stocks of the companies that are engaged in the extraction and production of the resources. The idea behind this approach is pretty straightforward: because the profitability of mining companies depends in large part on the [...]

Click here to read the original article on ETFdb.com.

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