What do you think about etfs for trading commodities

L

lasner

I was wondering what you guys thought about etfs for trading commodities instead of buying/selling futures contracts.
 
It's better to have them than not because those ETF's can attract trading activity from people who are afraid of futures contracts.
 
In futures:

the leverage is better,

tax treatment is better,

don't have to pay the fund's management fee(which is built into te share price)

depending on the futures the bid/ask per dollar invested is better,

in a backwardation situation tons of money can be made on rollovers as the nearby goes ballistic (copper recently)

enhancement strategies with options are available.

I can see that for some long term retirement accounts ETF's may be more suitable.

Regards,

GC
 
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