Friday, January 23, 2009

Short commodity with ETF.


More and more inverse / short ETFs are being launched by issuers nowadays. I have posted already article about reverse ETFs sorted in groups. At US stock exchanges you can find mostly exchange traded funds underlying equities with 1:1, double or triple leverage.

Today I would like to focus on commodity based short ETF. If you want to trade commodities and you are bearish this is the right product. Of course in case you don't trade futures contracts on commodity exchange.

In US, there is very limited offer of inverse commodities funds. The most active issuer is PowerShares and now offers following ETF:

PowerShares DB Agriculture Double Short ETN (AGA)
PowerShares DB Agriculture Short ETN (ADZ)
PowerShares DB Base Metals Double Short ETN (BOM)
PowerShares DB Base Metals Short ETN (BOS)
PowerShares DB Crude Oil Double Short ETN (DTO)
PowerShares DB Crude Oil Short ETN (SZO)
PowerShares DB Gold Double Short ETN (DZZ)
PowerShares DB Gold Short ETN (DGZ)

ProShares doesn't bring anything new and this is the latest offer.

UltraShort DJ-AIG Commodity (CMD)
UltraShort DJ-AIG Crude Oil (SCO)
UltraShort Gold (GLL)
UltraShort Silver (ZSL)

US ETF market is behind London Stock Exchange where the offer of commodity ETFs (ETCs) is much wider. You can find funds going long / short with wheat, sugar, cotton, corn, soybeans, gas, copper and of course the same which are also in US. The most active issuer in LSE is ETF Securities and here is the full list of commodity ETFs (ETCs).

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