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Ultimate Guide To “Third Generation” Commodity ETPs

By: ETFdb
The introduction of commodity ETPs has opened up a previously difficult to reach corners of the market to investors of all walks. No need to open up a costly (and complex) futures trading account, as this asset class is now available with all of the benefits inherent to the exchange-traded product structure, including transparency, intraday liquidity and low expenses, as well as enhanced tax efficiencies. Thanks to ongoing innovation in the industry, investors can now tap into products with unique methodologies that strive to combat perhaps the greatest foe to any commodity investor: contango [see also Everything You Need To Know About Commodity ETFs]. Although offerings like the PowerShares Commodity Index Tracking Fund (DBC) still dominate the space in terms of assets under management, a growing breed of innovative ETPs is quickly gaining traction as investors look for more creative ways to round out their exposure. Simply put, contango has become a major value-killer when it comes [...] Click here to read the original article on ETFdb.com. Related Posts: April ETF Roundup: Launches, Filings, and Closures iPath Rolls Out 18 “Pure Beta” Commodity ETNs June 2012 ETF Roundup: Launches, Filings, And Closures New Metals ETF (USMI) Debuts BNP Paribas Jumps In With Commodity ETF (BNPC)
The introduction of commodity ETPs has opened up a previously difficult to reach corners of the market to investors of all walks. No need to open up a costly (and complex) futures trading account, as this asset class is now available with all of the benefits inherent to the exchange-traded product structure, including transparency, intraday liquidity and low expenses, as well as enhanced tax efficiencies. Thanks to ongoing innovation in the industry, investors can now tap into products with unique methodologies that strive to combat perhaps the greatest foe to any commodity investor: contango [see also Everything You Need To Know About Commodity ETFs]. Although offerings like the PowerShares Commodity Index Tracking Fund (DBC) still dominate the space in terms of assets under management, a growing breed of innovative ETPs is quickly gaining traction as investors look for more creative ways to round out their exposure. Simply put, contango has become a major value-killer when it comes [...]

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

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