09.03.2011 - Commodity ETFs: Understanding contango
From Etftrends.com: The rising cost of commodities has a growing number of investors exploring their options for getting exposure while hedging the loss in their pocketbooks. If you’re one of those investors, be forewarned: commodity exchange traded funds (ETFs) need to be understood. As the saying goes, not all commodity ETFs are created equal. Many commodity ETFs are constructed in ways that prevent them from delivering perfect tracking of the spot price of their underlying commodity, or even with other seemingly comparable funds..............................................Full Article: Source
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