EXCHANGE-TRADED FUNDS
30 | SHARES | 01 August 2019
WHAT IMPACT DOES THE
FUTURES MARKET HAVE?
ĨƵƌƚŚĞƌĐŽŶƐŝĚĞƌĂƟŽŶ͕ǁŚŝĐŚ
ĂƉƉůŝĞƐƉĂƌƟĐƵůĂƌůLJƚŽůŽŶŐͲƚĞƌŵ
ŝŶǀĞƐƚŽƌƐ͕ŝƐƚŚĞŝŵƉĂĐƚŽĨƚŚĞ
ĨƵƚƵƌĞƐŵĂƌŬĞƚƉŚĞŶŽŵĞŶĂ
͚ĐŽŶƚĂŶŐŽ͛ĂŶĚ͚ďĂĐŬǁĂƌĚĂƟŽŶ͛͘
KǀĞƌƟŵĞƚŚĞƐĞĐĂŶŚĂǀĞĂ
ŵĂƚĞƌŝĂůŝŵƉĂĐƚŽŶƌĞƚƵƌŶƐ͘
DŽƐƚĐŽŵŵŽĚŝƟĞƐĂƌĞƚƌĂĚĞĚ
ŝŶĨƵƚƵƌĞƐĐŽŶƚƌĂĐƚƐ͘dŚŝƐŝƐƚŚĞ
ƉƵƌĐŚĂƐĞŽƌƐĂůĞŽĨĂĐŽŵŵŽĚŝƚLJ
ĂŐƌĞĞĚĂƚĂĮdžĞĚƉƌŝĐĞĨŽƌ
ĚĞůŝǀĞƌLJŽŶĂƐƉĞĐŝĮĞĚĚĂƚĞʹ
ƚLJƉŝĐĂůůLJĞŝƚŚĞƌŽŶĞŵŽŶƚŚ͕ƚŚƌĞĞ
ŵŽŶƚŚƐŽƌƐŝdžŵŽŶƚŚƐĂŚĞĂĚ͘
dŚŝƐĨĂĐŝůŝƚĂƚĞƐƚŚĞďƵLJŝŶŐ
ĂŶĚƐĞůůŝŶŐŽĨƚŚĞƌĞƐƉĞĐƟǀĞ
ĐŽŵŵŽĚŝƚLJǁŝƚŚŽƵƚĂŶLJŽŶĞ
ŚĂǀŝŶŐƚŽƚĂŬĞƉŚLJƐŝĐĂůĚĞůŝǀĞƌLJ
ŽĨĂďĂƌƌĞůŽĨŽŝůŽƌďƵƐŚĞůŽĨ
ĐŽƌŶ͕ĨŽƌĞdžĂŵƉůĞ͘KŶůLJĂƟŶLJ
ĨƌĂĐƟŽŶŽĨƚŚĞƐĞĐŽŶƚƌĂĐƚƐĂƌĞ
ƐĞƩůĞĚƚŚƌŽƵŐŚĚĞůŝǀĞƌŝĞƐ͕ƚŚĞ
ďƵůŬĂƌĞŝŶƐƚĞĂĚ͚ƌŽůůĞĚŽǀĞƌ͛ĂƌĞŽŶůLJĂƉƉƌŽƉƌŝĂƚĞĨŽƌ
ŵŽƌĞƐŽƉŚŝƐƟĐĂƚĞĚŝŶǀĞƐƚŽƌƐ͕
ƉĂƌƟĐƵůĂƌůLJĂƐƚŚĞŝŶĚŝǀŝĚƵĂů
ŵĂƌŬĞƚƐĐĂŶƐĞĞĐŽŶƐŝĚĞƌĂďůĞ
ǀŽůĂƟůŝƚLJ͘
/ŶƐƚĞĂĚŝƚĐŽƵůĚďĞŵŽƌĞ
ƐĞŶƐŝďůĞƚŽƐƚĂƌƚŽīǁŝƚŚĂŶ
d&ǁŚŝĐŚƚƌĂĐŬƐĂůĂƌŐĞďĂƐŬĞƚ
ŽĨĚŝīĞƌĞŶƚĐŽŵŵŽĚŝƟĞƐ͘
ŶĞdžĂŵƉůĞŝŶĐůƵĚĞƐ Invesco
Bloomberg Commodity
(CMOD) ͘,ŽǁĞǀĞƌ͕ŶŽƚĂůů
ďƌŽĂĚĐŽŵŵŽĚŝƟĞƐŝŶĚŝĐĞƐĂƌĞ
ĐƌĞĂƚĞĚĞƋƵĂůĂŶĚƐŽŵĞǁŝůů
ďĞĚŽŵŝŶĂƚĞĚďLJƚŚĞůĂƌŐĞƌ
ĐŽŵŵŽĚŝƚLJŵĂƌŬĞƚƐƐƵĐŚĂƐŽŝů͘
dŚĞŵĞƚŚŽĚŽůŽŐLJďĞŚŝŶĚƚŚĞ
ůŽŽŵďĞƌŐŽŵŵŽĚŝƚLJ/ŶĚĞdž͕ĨŽƌ
ĞdžĂŵƉůĞ͕ƐĞĞŬƐƚŽĂĚĚƌĞƐƐƚŚŝƐ
ƐŝƚƵĂƟŽŶďLJĂĚũƵƐƟŶŐƚŚĞŝŶĚĞdž
ǁĞŝŐŚƟŶŐƚŽĞŶƐƵƌĞŶŽƐŝŶŐůĞ
ĐŽŵŵŽĚŝƚLJĚŽŵŝŶĂƚĞƐƚŚĞŝŶĚĞdž͘
/ŶĐŽŵƉĂƌŝƐŽŶ͕ƚŚĞ^ΘW'^/
ŝŶĚĞdžŚĂƐĂŶĞŶĞƌŐLJƉƌŽĚƵĐƚƐ
ǁĞŝŐŚƟŶŐŽĨŵŽƌĞƚŚĂŶςϬй͘We explain how the different products work and ways to play three commodities
forecast to rise in valueWhere to start with
investing in metals and
energy products via ETFs
C
ŽŵŵŽĚŝƟĞƐ͕ǁŚŝĐŚĐŽǀĞƌ
ĞǀĞƌLJƚŚŝŶŐĨƌŽŵŽŝůƚŽ
ĐŽƉƉĞƌƚŽĐŽƌŶ͕ƉůĂLJĂ
ĐĞŶƚƌĂůƌŽůĞŝŶŽƵƌůŝǀĞƐ͘dŚĞLJĨƵĞů
ƚŚĞĐĂƌƐǁĞĚƌŝǀĞ͕ůŝŶĞƚŚĞĐĂďůĞƐ
ǁŚŝĐŚŬĞĞƉƵƐŽŶůŝŶĞĂŶĚƐŽŵĞ
ĂƌĞŝŶƚŚĞŵĞĂůƐǁĞĞĂƚ͘
/ŶǀĞƐƟŶŐŝŶƚŚŝƐƐƉĂĐĞ
ƵƐĞĚƚŽďĞƚŚĞƉƌĞƐĞƌǀĞŽĨ
ƚŚĞƉƌŽĨĞƐƐŝŽŶĂůƐďƵƚƐĞǀĞƌĂů
ĚĞǀĞůŽƉŵĞŶƚƐ͕ŵŽƐƚŶŽƚĂďůLJƚŚĞ
ĞŵĞƌŐĞŶĐĞŽĨĞdžĐŚĂŶŐĞͲƚƌĂĚĞĚ
ĨƵŶĚƐ; d&ƐͿ͕ŚĂǀĞĞŶĂďůĞĚ
ŽƌĚŝŶĂƌLJŝŶǀĞƐƚŽƌƐƚŽŐĞƚŝŶŽŶ
ƚŚĞĂĐƚ͘
d&ƐƚƌĂĐŬĂĐĞƌƚĂŝŶŝŶĚĞdž
ƚŽŵŝƌƌŽƌŝƚƐƉĞƌĨŽƌŵĂŶĐĞ͘&Žƌ
ĞdžĂŵƉůĞ͕ŝĨLJŽƵďƵLJĂƐŝůǀĞƌ d&͕
ŝƚƐŚŽƵůĚŵŽǀĞƵƉĂŶĚĚŽǁŶŝŶ
ůŝŶĞǁŝƚŚƚŚĞŵŽǀĞŵĞŶƚŽĨƚŚĞ
ƉƌĞĐŝŽƵƐŵĞƚĂů͘DEMOGRAPHICS UNDERPIN
COMMODITIES
ŶŝŶĐƌĞĂƐŝŶŐŐůŽďĂůƉŽƉƵůĂƟŽŶ
ĂŶĚƚŚĞĮŶŝƚĞŶĂƚƵƌĞŽĨŵĂŶLJ
ĐŽŵŵŽĚŝƟĞƐƵŶĚĞƌƉŝŶƐƚŚĞƐĞ
ŵĂƌŬĞƚƐŽǀĞƌƚŚĞůŽŶŐƚĞƌŵ͘
,ŽǁĞǀĞƌ͕ǁŚŝůĞƐŽŵĞ
ĐŽŵŵŽĚŝƟĞƐĞdžƉŽƐƵƌĞĐŽƵůĚďĞ
ĂŐŽŽĚĮƚĨŽƌĂďĂůĂŶĐĞĚƉŽƌƞŽůŝŽ
ƚŚĞƌĞĂƌĞƐĞǀĞƌĂůĨĂĐƚŽƌƐLJŽƵ
ŶĞĞĚƚŽĐŽŶƐŝĚĞƌŝĨLJŽƵǁĂŶƚƚŽ
ďƵLJĂĐŽŵŵŽĚŝƚLJͲďĂƐĞĚƚƌĂĐŬŝŶŐ
ƉƌŽĚƵĐƚ͕ƐƵĐŚĂƐĚŝǀĞƌƐŝĮĐĂƟŽŶ͘
WƌŽĚƵĐƚƐĨŽĐƵƐĞĚŽŶĂ
ƐŝŶŐůĞĐŽŵŵŽĚŝƚLJ͕ǁŝƚŚƚŚĞ
ƉŽƐƐŝďůĞĞdžĐĞƉƟŽŶŽĨŐŽůĚ͕HOW COMMODITIES INDICES’
WEIGHTINGS CAN DIFFER
^ΘW'^/ ŽŵŵŽĚŝƚLJ/ŶĚĞdžůŽŽŵďĞƌŐ^
ŶĞƌŐLJ ςϮй ϯϮ͘ρй
ŐƌŝĐƵůƚƵƌĞ ϭς͘ρй Ϯϳ͘Θй
Industrial Metals ϭϬй ϭΘ͘ρй
WƌĞĐŝŽƵƐDĞƚĂůƐ κ͘ϳй ϭρ͘ςй
>ŝǀĞƐƚŽĐŬ ς͘εй ρ͘ϳй
Soruce: Bloomberg, S&P