ETPs open up commodity investing

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The rapid expansion of the ETP industry has opened access to commodities, allowing more investors to tap the asset class, ETF Securities says.

The issuer's inaugural Global Commodity ETP Quarterly report argues that the broad investor base of commodity ETPs, where assets have grown at a compound annual rate of 103% over the past five years, is a "positive effect" of the industry. ETF Securities' head of research and investment strategy Nick Brooks claims ETCs have facilitated investing not only for big institutional players but also private bankers, increasingly for IFAs and even for retail investors. Brooks says commodities investing has historically been perceived as an area that is both volatile and not well understood, d...

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