What do you think about etfs for trading commodities

Discussion in 'ETFs' started by lasner, Jul 24, 2007.

  1. lasner


    I was wondering what you guys thought about etfs for trading commodities instead of buying/selling futures contracts.
  2. It's better to have them than not because those ETF's can attract trading activity from people who are afraid of futures contracts.
  3. In futures:

    the leverage is better,

    tax treatment is better,

    don't have to pay the fund's management fee(which is built into te share price)

    depending on the futures the bid/ask per dollar invested is better,

    in a backwardation situation tons of money can be made on rollovers as the nearby goes ballistic (copper recently)

    enhancement strategies with options are available.

    I can see that for some long term retirement accounts ETF's may be more suitable.