Commodities-loving investors need to take a more active approach that targets the most promising subsectors or individual commodities, which when hot can deliver handsome returns.
Agriculture, for instance, should do well long-term but onlycornhas positive short-term fundamentals, say analysts. Commodities investors also like platinum, palladium, copper, unleaded gasolineand heating oil.
The following ETFswere chosen for their focused exposure to the favored commodities.
Due to their specialized investment niche and size, they may be harder to trade than larger, more diversified funds and may be subject to different tax treatment of gains and losses than stocksandbonds. These investment vehicles usually mirror futures trading.
But for a short- to medium-term play on the sector, these ETFs cut right to the chase.