Commodities ETFs "easy target" for criticism

clock •

The recent surge in popularity of commodities ETFs and the lack of understanding as to how they work is making them an "easy target" for criticism, according to ETF Securities (ETFS).

ETFS Marketing head of product and investment strategy Fred Jheon says media articles warning investors against commodity-based ETFs are "needlessly misdirecting" people away from the real issues affecting these products. Speaking at the Morningstar ETF conference held in Chicago, Jheon says the confusion stems from ETFs that hold futures and investors not completely understanding how they work. For example, when commodities are in contango - when an imminent futures contract is more expensive than an expiring contract - then the fund and the investors can experience a loss. Jheon ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on ETFs

Advisers and ETFs – are attitudes and portfolios changing?

Advisers and ETFs – are attitudes and portfolios changing?

'Platforms are a major barrier to using ETFs, according to advisers and wealth managers'

Laura Miller
clock 14 September 2026 • 5 min read
Partner Insight: Securitised and CLO ETFs - Resilience, diversification and the case for active

Partner Insight: Securitised and CLO ETFs - Resilience, diversification and the case for active

John Kerschner and Ian Bettney from Janus Henderson’s Global Securitised Team examine how CLOs and other securitised assets have weathered recent volatility, and why selectivity and active management remain central to capturing opportunities across the market.

John Kerschner and Ian Bettney @ Janus Henderson
clock 13 April 2026 • 9 min read
Clients could be losing out by sticking to index funds over ETFs

Clients could be losing out by sticking to index funds over ETFs

Awareness of ETF upsides challenges the notion mutual funds are ‘just as good’

Ryan Hughes
clock 04 March 2026 • 5 min read