| Most commodity-related exchange traded funds track a basket of futures securities. Consequently, investors should understand how the underlying futures markets work and the effects they will have on ETFs.
In a paper titled The Strategic and Tactical Value of Commodity Futures, Claude Erb and Campbell Harvey argue that returns on commodity futures can be broken down into four parts: the risk-free rate, the spot-price return, the roll yield and the diversification return, writes Morningstar strategist Samuel Lee.............................................Full Article: Source
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