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Neutral Means Diversification With Commodities ETFs

Mark McLaughlin, |Special to CNBC.com
Friday, 15 Jun 2012 | 2:31 PM ET

Commodity markets are cyclical, with different commoditiestrading in and out of favor based on factors ranging from natural disasters to government policies in specific countries or regions, and as the past eight months have shown, changes in price direction can be swift and powerful.

Complete exposure to commodities should include weightings to all the major subsectors: precious and industrial metals, energy, agriculture and soft goods such as cocoa and coffee.

Owning a variety of broad-based ETFs with low costs and large asset bases that derive exposure through the physical commodities, futures contracts and stocks engaged in producing the commodities is an efficient way to access the asset class.

  Price   Change %Change
MKT VAI ETF
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GLD
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ISHARES SPGMIF
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