It’s absolutely essential for a portfolio to be properly diversified, and the best way to accomplish diversification is to find uncorrelated issues. Some of the least correlated investment opportunities can be found in commodities and currencies. It used to be quite difficult for retail investors to get involved in these markets, but with the advent of Alternative ETFs, they have become much more easily accessible. Now one of the most dramatically uncorrelated asset classes is available to be added to more conventional portfolios. You can now gain easy and direct exposure to crude oil, copper, gold, the euro, yen or dollar index through Alt ETFs.
Because there are so many issues available, it might seem difficult to begin selecting an Alt ETF. These top 10s can be useful in helping you narrow down your focus to those that matter. If you’re looking for greater insight into my investing methodology, you should have a look at my book “BOOK TITLE.” It’s a practical reference tool for ETF investing in the U.S. Equities space.
There will definitely be some similarities between the ten ETFs presented in each of the following top 10s. Sometimes they might even appear practically identical, but you need to keep in mind that there are any number of characteristics that might make an ETF more advantageous than another, depending on your investment style. Chief among those characteristics to be aware of are fee ratios (lower is better), trading volume, benchmarked index, whether the index is “enhanced,” and assets under management.
- Commodity Sector Tracking ETFs
- Agricultural Commodity ETFs
- Base Metals Commodity ETFs
- Precious Metals ETFs
- Established Currency ETFs
- Emerging Currency ETFs
- Energy Commodity ETFs