Saturday, March 14, 2009

Commodities

I found this information in this article. Like gold, a basket of commodities that includes crude oil, copper and wheat might provide a reliable hedge against inflation. Unlike gold, a basket of commodities provides diversification across multiple assets and – therefore – lower volatility than gold alone. There are a couple of interesting ETFs available: the PowerShares DB Commodity Index Tracking Fund (DBC) and the iShares S&P GSCI Commodity-Indexed Trust (GSG). DBC holds only six commodities: Crude oil, heating oil, aluminum, corn, wheat and gold. GSC holds exchange trade futures to reflect the GSCI Excess Return Futures. S&P GSCI contains 24 commodities from all commodity sectors: six energy products, five industrial metals, eight agricultural products, three livestock products and two precious metals.

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