commodity ETF

Definition

An exchange-traded fund (ETF), or investment fund that is traded on stock exchanges, that invests in commodities such as agricultural products, natural resources and precious metals. Commodity ETFs are often index funds that do not track securities, and are therefore not counted as investment companies for regulatory purposes under the Investment Company Act of 1940. Investors often utilize commodity exchange traded funds as an approach to diversifying an investment portfolio.
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commodity contract Commodity Exchange