Broad-Based Commodity ETF – DBC
It’s not easy to choose a commodity ETF, though. You have no idea which way inflation will send gold. Is China going to put copper to use in more houses this year? If Justin Bieber goes platinum, will that send PPLT soaring?
If you’re asking yourself these questions, and have absolutely no answers, your best move is the simplest of all — a single commodity ETF that holds a basket of goods, just to give you something that isn’t stocks or bonds.
The PowerShares DB Commodity Index Tracking Fund (DBC) is a commodity ETF that does just that, charging 0.85% for exposure to 14 different commodities, including several types of oils, metals and even agricultural products such as corn, wheat and sugar.
DBC has its quirks, sure. Like JJC, this broad commodity ETF deals in futures contracts. And because of how the commodity ETF is structured — it’s technically a partnership — investors will have to fill out a Form K-1 each year.
Nonetheless, there’s few one-stop shops for commodity exposure as well-traveled as DBC, which has been around since 2006 and has racked up more than $6 billion in assets under management.
As of this writing, Kyle Woodley did not hold a position in any of the aforementioned securities.