8 Best Commodity ETFs for Diversification
Commodities are one type of alternative investment because they're not stocks, bonds or cash.
Some experts say these raw materials should make up at least some of an investment portfolio because they behave differently from stocks and bonds, providing an element of diversification.
While investors can put money into commodities through futures and options or stocks of oil and gas firms, miners or agricultural companies, one of the easiest ways is through exchange-traded funds, or ETFs.
Many offer single-ticker diversification among types of commodities or holdings of multiple production companies to minimize risk. In addition to funds of producers and futures, there are also funds that offer physical commodities exposure.
