| Commodity ETFs are Exchange-traded funds that invest in physical commodities such as agricultural goods, energy resources and precious metals. The ETFs are great investment vehicles for investors who need to hedge risk or want to gain exposure in physical goods. They are economical to buy and cheap to maintain over the long run.
A commodity ETF can have exposure in a group of commodities or sometimes just a single commodity. Most commodity ETFs invest in futures contracts, but they do not use leverage. This prevents the fund from running into a negative balance situation...............................................Full Article: Source
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