The ETF commodities conundrum

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Sharp falls and rebounds in commodities prices have caused concern among investors. Paul Burgin looks at how ETPs have been affected by the volatility

The recent commodity sell-off in May sparked much activity and debate among exchange-traded product investors. The sharp dip in silver prices prompted many to sell out of both physical and futures-based ETCs, with the effects spilling over into other commodity assets. The incident also highlighted differences in product design and performance. Strengths and weaknesses The attributes of ETPs tend to expose both strengths and weaknesses in investment strategies and the products themselves when markets turn suddenly. The total exposure provided by ETP products offers no place to hide for m...

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