| Investing with commodity exchange-traded funds has always been a bit like eating pancakes with Log Cabin syrup: Close enough for most people, but still a long way from the real thing. ETFs can’t own real-life barrels of oil, for instance, so instead they rely on oil futures, forward-looking derivatives. This recipe comes at a high cost, rendering most of these ETFs nearly useless for long-term investors.
An industry newcomer is about to debut a new ETF structure that aims to provide investors something purer—not a barrel of oil itself, but an ETF that tracks the oft-quoted “spot” price of one. If it works, ETF investors could have a better mechanism for tracking commodities prices. But there are quirks...............................................Full Article: Source
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