Commodities come in several varieties. Therefore choosing the best commodities funds for your portfolio depends upon what you want them to do for you. From a portfolio management perspective, commodities funds are best used as diversification tools because they typically have a low correlation to a broad market index, such as the S&P 500 Index.
From a market timing perspective, commodities funds can be tricky, especially with regard to the biggest commodities story of the moment — the slide in oil prices — that has all the elements of the proverbial peril of “catching a falling knife.”..............................................Full Article: Source
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