30.01.2014 - Do ETFs push up the price of commodities?
With ETFs linked to nearly every commodity imaginable, previously hard-to-invest-in commodities now have the potential to be house-hold investments. While you used to need a futures trading account to trade oil, now anyone with an equity trading account can buy an oil ETF; same goes for gold as well as a host of other commodities. But does the added interest and easy access to commodities through ETFs push up the price of that commodity? While blanketed as ETFs, there are also commodity Exchange Traded Notes, known as ETNs. ETNs do not buy the physical commodity directly, but rather track a commodity index. For example, the iPath S&P GSCI Crude Oil Total Return ETN tracks the Goldman Sachs Crude Oil Return Index...............................................Full Article: Source
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