Precious Metal ETFs: Physical vs. Equity Exposure

ETFs in the commodity space have had an incredible run in 2010, with some funds gaining over 80% on the year and becoming some of the year’s top performers. Commodities across the board have enjoyed big gains this year due to a number of factors, including a shaky dollar, strong emerging markets demand, and various supply shortages around the world. Despite the impressive returns delivered recently (and in fact for much of the decade), there are still those who are hesitant to embrace commodities as an investable asset. For the majority of natural resources, it isn’t practical for investors to establish exposure to spot prices; storing crude oil in your basement of live cattle in your backyard isn’t exactly a recipe for investing success. That means that futures-based strategies are the next best choice, exposing investors to the nuances associated with rolling holdings as they approach expiration (i.e., contango and [...] Click here to read the original article on ETFdb.com. Related Stories: ETFS Rolls Out Physical Precious Metals Basket ETF (GLTR) Playing Precious Metals Through Equity ETFs ETF Securities Planning Precious Metal Basket ETF