Commodity ETF funds are an easy way to invest in commodities. You don’t need to buy bags of grain to feed livestock in the backyard or build a power plant in the basement to harness nuclear energy. Instead, you can contact your broker or even go to your laptop and purchase an ETF online. One deal, just one, and a low commission.
Broad Commodity ETFs
Broad commodity ETFs are exchange-traded funds (ETFs) that invest in actual commodities, such as agricultural products, natural resources, and precious metals. A commodity ETF is typically focused on one commodity, which is held in physical storage. The funds listed below track a diverse basket of commodities:
Broad Agriculture ETFs
These funds invest in a wide range of agricultural products:
Individual Types of Agriculture ETFs
These funds invest in individual types of agricultural products:
Energy ETFs
These funds invest in a wide range of energy sources:
Individual Types of Energy ETFs
These funds track specific types of energy:
Oil ETFs
Another common type of commodity ETF is oil and natural gas. However, since oil and gas cannot be stored like precious metals, these funds invest in futures contracts instead of the commodity itself.
Natural Gas ETFs
These funds track natural gas:
Natural Resources ETFs
Natural resources funds invest in companies involved in the production, distribution, and storage of natural resources, including but not limited to metals, agricultural commodities, timber, oil, and gas:
Water ETFs
Water funds invest in companies involved in water treatment and distribution, arguably the most important resource on Earth:
Precious Metals ETFs
Precious metals like gold and silver are popular ETF choices due to the underlying commodity’s ability to not corrode or degrade:
Gold ETFs
These funds track gold:
Other Types of Precious Metals ETFs
These funds focus on investments in precious metals, including silver, platinum, palladium, and other white metals:
Base and Industrial Metals ETFs
These funds provide opportunities to invest in the prices of various base and industrial metals such as aluminum, lead, copper, and nickel:
Other Types of Metals ETFs
These funds provide opportunities to invest in specific types of metals like tin and aluminum:
Materials ETFs
Materials ETFs provide opportunities to invest in domestic and foreign securities that operate in the basic materials sector – producing and distributing chemicals, timber, metals, and other raw materials:
These are some of the different types of commodity ETFs that you can invest in. You should monitor and research each type before making any trades.
Source: https://www.thebalancemoney.com/list-of-commodity-etfs-1214758
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