An improving global economy suggests a potential rise may be in store for the prices of commodities, including oil, which rose again to over USD100 /barrel and appear to be heading higher. For investors looking for exposure to global commodities and resources, IndexIQ offers a number of interesting options through its family of Exchange-Traded Funds (ETFs).
IQ Global Resources ETF (GRES): GRES is the broadest commodities/resources ETF, with the eight primary commodities sub-sectors, plus timber, water and coal.
IQ Global Agribusiness Small Cap ETF (CROP): CROP enables investors to gain access to the gains anticipated from rising food prices and continued food shortages, with small caps expected to gain disproportionately.
IQ Global Oil Small Cap ETF (NYSE Arca: IOIL). IOIL provides global exposure to the small cap end of the oil industry, including refining & marketing, exploration & production, and equipment services and drilling.
IQ Real Return ETF (CPI). This ETF was designed specifically to provide investors with a real return above the rate of inflation, while keeping volatility low.
“We continue to believe that we are in the midst of a multi-year bull market for commodities,” says Adam Patti, chief executive officer at IndexIQ. “The factors that have driven this trend remain in place – growing populations, limited resources, and demand from the emerging markets.”
Patti further notes that in the US, at least, the small cap sector of the market has been generally outperforming so far this year, with the Russell 200 well ahead of the S&P. “Our small cap ETFs are designed to provide exposure to the smaller end of the market, which we believe is where much of the innovation and growth is likely to occur over the next several years.”
