Commodity funds Flashcards
1
Q
What are 3 commodity fund types?
A
Index funds, Commodity funds, futures based commodity funds
2
Q
Index funds
A
these funds track and index that includes various commodity assts
3
Q
Commodity funds
A
Known as “true” commodity funds, these funds invest directly in the underlying commodity asset. eg hold direct positionsin gold and oil
4
Q
Futures based commodity funds
A
these funds offer exposure to commodities through investing in futures contracts, without ever buying the actual commodity themsleves. This investment carries higher risk, as futures contracts market is v volatile.
