Avoid These Pitfalls in Commodity ETFs

Exchange-traded commodity products have become quite popular over the last several years, and represent one of the great "democratizations" of investing that ETFs have brought on. The exchange-traded structure has made a once-hard-to-reach asset class easily accessible, and investors of all skill levels and degrees of sophistication have embraced these funds as new additions to their portfolios.

If used correctly, commodity exchange-traded products can be tremendously powerful tools, as they bring the potential for both diversification and return enhancement. But there are plenty of pitfalls when it comes to commodity ETFs as well -- if you don't know exactly what you're doing, it's easy to make a costly mistake. Below I'll run through three items to keep in mind when you're dealing with commodity ETFs....441 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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