Articles on Stock markets
News, Research and Analysis
What is a commodity etf?
Commodity ETFs are focused on tracking the performance of commodity prices and their derivatives contracts.
ETFs are like mutual funds that trade intra-day like stocks, but the volatility of commodities prices can make these equally unpredictable. Commodity ETFs are intended to track the performance and price movements of commodities and their derivatives.
All sorts of commodities can and have become part of an ETF offering, from gold to grain, cattle, and coffee, and even US and foreign currencies. Each commodity has its peculiarities and it would be good to know about the market for each commodity that you intend to invest in.
ETFs use the pooled capital of investors like mutual funds to invest in assets according to an agreed-upon strategy set forth in a prospectus. Commodity ETFs trade on exchanges such as the NYSE Arca exchange. Investors can trade options on these ETFs as well.
Some commodities ETFs focus on one type of commodity, and some invest in a certain variety of them. Commodities ETFs may invest in and hold some of the physical assets in which they trade, but mostly they use futures and other derivatives instead.
The price movement in commodity ETFs may not adhere to the prices of the underlying commodity, due to the effects of volume on the ETF share prices, as well as contango and backwardation.
What is a Foreign Currency Swap?
What is a Commodities Futures Contract?
What is Medicare Part C?
Medicare Part C, is a private plan that is mandated to be at least equal in coverage to Part A and Part B. There is a...
What is a Mortgage Subsidy Bond?
Mortgage subsidy bonds are municipal bonds which are used to fund mortgage relief programs (a.k.a. mortgage revenue bond)
Why do Companies Opt for ICOs?
Initial Coin Offerings are ways for new cryptocurrency or other technology companies to raise capital and put their coins into circulation
What is Mortgage Refinancing?
Refinancing a mortgage means to get a new mortgage agreement with a different interest rate
What are TIPS?
Treasury Inflation Protected Securities (TIPS) are coupon-paying treasuries issued by the US Government with inflation
What is Euro LIBOR?
The primary benchmark for short-term interbank loans around the world is the LIBOR, and Euro Libor is denominated in Euros
What were the Biggest Insider Trading Scandals?
In 2007, Qwest Communications CEO Joseph Nacchio was convicted of making over $50 million dollars through illegal trades
How should my strategy change with age?
You can afford to be very aggressive when you’re young, and gradually become more conservative as you grow older
What Types of Bonds Are There?
Bonds are divided into a several categories, and it is possible to get substantial diversification within a bond...