Why aren't there more commodity ETFs?

it's because 40-Act funds can't outright own commodities therefore they need SPVs and other structures to properly get exposure. This is very expensive and complicated therefore you need the market (demand) to justify the product.
 
Quote from DrPepper:

With the commodity market dwarfing the stock market in size, I do not understand why there are not more commodity ETFs. We have USO, UNG, GLD and SLV each dedicated to a specific commodity. But why isn't there a pure corn, soybean, wheat, coffee, cocoa, sugar, lean hog and live cattle ETF? It seems like they would be instant successes.
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how about $8.49 for 87-octane, while you're at it?


these funds receive monies that need to purchase assets, commodities, futures and such artificially creating false demands which inflate prices, destroy economies of scale as well as, in this case heavily contribute to the destabilization of the USD....

why don't we fully regulate these ETF's that purchase essential commodities so that they don't contribute deliteriously?
 
Quote from DrPepper:

Thanks, that is reassuring. I have not considered trading the minis before, but another poster also recommended them in a different thread. He stated that the fills are good but the commission is higher, which is not surprising. I can check with my broker, but do you know off-hand what other agricultural and softs futures contracts have minis? Like corn, wheat, soybeans, sugar, cocoa, coffee, live cattle or lean hogs? Also are the fills good in all of them? Thanks.
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keep in mind, that commodities have a continuous "leaking balloon" syndrome. In other words, if the underlying does not move and the market is not in backwardization, then the commodity loses value over time, due to builtin charges such as storage.

If you are short, that works in your favor, if long, it works against you. This is a concern if you are holding for long periods.
 
Quote from TraderZones:

keep in mind, that commodities have a continuous "leaking balloon" syndrome. In other words, if the underlying does not move and the market is not in backwardization, then the commodity loses value over time, due to builtin charges such as storage.

If you are short, that works in your favor, if long, it works against you. This is a concern if you are holding for long periods.
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Just to clarify you're speaking of futures, for a commodity tracking ETF, like gold, this is not an issue, provided the ETF doesn't gain any of its exposure through futures (some do). GLD I believe holds physical gold to gain its exposure.
 
Quote from DrPepper:

With the commodity market dwarfing the stock market in size, I do not understand why there are not more commodity ETFs. We have USO, UNG, GLD and SLV each dedicated to a specific commodity. But why isn't there a pure corn, soybean, wheat, coffee, cocoa, sugar, lean hog and live cattle ETF? It seems like they would be instant successes.
More...

Do you have any data to back up the claim that the commodity market dwarfs the stock market in size?

If I'm not mistaken its the other way around, at least when it comes to the exchange-traded commodities (the OTC market may be bigger).
 
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