ETF Talk

Small Providers Harvest the Commodities ETF Space

The investment category of commodities covers a wide range of products, ranging from earth-based fuels (oil and gas) to precious metals (silver, gold) to agricultural produce (corn, soybeans). Just as there are many varieties of products classed as commodities, many exchange-traded fund (ETF) providers mine this space to offer potentially profitable funds. Among these are several relatively small providers, which do not have as many funds available to investors as the heavy hitters do.

Smaller ETF providers in the commodities space include the United States Commodity Funds, Teucrium and IndexIQ. These three providers each offer several commodities funds across the spectrum of what the sector offers.

Consistent with its straightforward name, the United States Commodity Funds offers U.S.-based commodity funds. The provider gives investors a small selection of metal and agricultural funds. But this provider’s main focus is in oil and natural gas. One of its more well known funds is United States Natural Gas (UNG), which invests in futures contracts on natural gas near their expiration month. UNG has risen a stellar 21.51% so far during 2014’s tepid market.

Read more about the commodities funds from these small exchange-traded fund providers at Eagle Daily Investor.

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