Commodity ETFs: Pain or Gain?

businessweek.comGreat article at BusinessWeek.com worth your time and attention Masters regarding commodity ETFs titled "Amber Waves of Pain" digging into such funds as the USO, UNG, and DBA. 

Lured by the idea of profiting from raw materials, investors put $277 billion into commodity ETFs and related securities by the end of 2009. Then they noticed a problem: When commodities go up, the commodity ETFs often don't.

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Wall Street had transformed the reputation of commodities from a hyper-volatile investment that can steal your shirt to a booster for battered portfolios, something that rose when stocks fell and hedged against inflation. People who would never think of buying a tanker of crude or a silo of wheat could now put both commodities in their 401(k)s. Suddenly everybody was a speculator.
 

Read - Amber Waves of Pain at BusinessWeek>>

 

Also, at BusinessWeek.com - the  Podcast: Behind the Story>>

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