commodity

Commodities are the raw materials that production and manufacturing rely on. Investing in them can help investors diversify their portfolios and win greater protection from inflation.


However, commodities as a group have been out of favour for almost a decade and investors would rightly question the wisdom of either directly holding commodities or commodity producers in their portfolios.



A decade of underperformance


To consider the performance of physical commodities as a group, we selected the Dow Jones Commodity Index....
With the political debate in the U.S. heating up, politicians have taken a renewed interest in the cost and availability of healthcare products and services. This had a negative impact on the performance of healthcare stocks in April. The iShares US Medical Device ETF (New York symbol IHI) lost 3.9% during the month while the Vanguard Healthcare ETF (New York symbol VHT) lost 3.0%.


This happened against the backdrop of a very positive month for equities around the world....

Various plausible arguments can be made in favour of investing in physical commodities or their listed producers. However, the practical problems associated with directly holding commodities make the debate almost irrelevant. Holding a well-diversified basket of publicly-listed producers provides investors with a reasonable alternative.






It’s almost impossible to invest directly in commodities due to the costs involved with their storage....
Commodities can help diversify portfolios, but are cyclical and come with high levels of price volatility.


However, well-diversified ETFs that offer exposure to commodity producers can help investors overcome the problems associated with direct investments in physical commodities or funds that track a single commodity.


Below, we look at three ETFs that provide exposure to commodity producers or directly to the commodities themselves....
When investing in gold mining stocks, reduce your risk by buying stock in stable companies at sustainable prices.
We think foreign stocks can safely make up 10% of a conservative investor’s portfolio. One way is through exchange-traded funds (ETFs) with an overseas focus.


The best of those ETFs continue to offer very low management fees and well-diversified, tax-efficient portfolios of high-quality stocks.


Here’s a look at four international ETFs we see as suitable for new buying and two others we feel you should continue to hold.


ISHARES MSCI EMERGING MARKETS ETF $43.60 (New York symbol EEM; buy or sell through brokers) is designed to track the MSCI Emerging Markets Index.


The fund’s geographic breakdown is as follows: China, 33.0%; South Korea, 12.9%; Taiwan, 11.5%; India, 9.0%; Brazil, 7.0%; South Africa, 6.2%; Russia, 3.8%; Mexico, 2.7%; Thailand, 2.3%; Indonesia, 2.1%; Malaysia, 2.1%; and Poland, 1.1%.


Its top stocks are Tencent Holdings (China: Internet), 5.2%; Alibaba Group (China: e-commerce), 4.5%; Taiwan Semiconductor (computer chips), 3.8%; Samsung Electronics (South Korea), 3.5%; Naspers (South Africa: media and Internet), 2.1%; China Construction Bank, 1.6%; Ping An Insurance Group (China), 1.1%; China Mobile, 1.1%; Industrial & Commercial Bank of China, 1.0%; and Reliance Industries (India: conglomerate), 1.0%.


iShares launched the ETF on April 7, 2003....
The best lithium mining companies to invest in will meet key criteria, including operating in stable environments and having both sound balance sheets and realistic valuations

The dramatic downward movement in U.S. government bond yields in March reverberated through the markets, with interest rate-sensitive groups, such as real estate and utilities, benefitting strongly from renewed expectations for lower, or at least steady, interest rates.


The iShares 20+ Year Treasury Bond ETF (TLT.O) tracks long-term U.S....
The energy industry can help provide a hedge against inflation and top energy dividend stocks offer current income—as well as a history of success and modern technology for future growth
The best penny stock mining companies to invest in are not overly promotional, have strong management, and are reasonably well funded