| Investors in some commodities exchange-traded funds are getting a performance boost this year from a quirk of the commodities futures markets. Most commodities ETFs get their exposure by buying futures contracts, and over time they typically shift, or roll, their positions from nearby to later-dated contracts. Sometimes, they have to pay more for the new contracts, which eats into returns.
But this year, declining inventories, a series of supply disruptions and demand jolts across markets from oil to nickel to hogs has resulted in prices being higher for immediate-delivery futures contracts than for contracts for later delivery..............................................Full Article: Source |