There was a big push by advisers to include newly launched commodity funds in portfolios starting around 2006.
Commodity funds are also seen by some as a way to invest by proxy in China's rapid growth.
The fees and expenses of commodity funds wiped out most of their gains.
Consider this multi-week correction your opportunity to build positions in select commodity funds.
Many commodity funds are heavily overweighted toward the energy sector, which can account for as much as 70% of the portfolio.
He has focused on building the Tokyo-based firm into a one-stop shop for leases, loans, commodity funds, insurance and other services not unlike a GE Capital or Citigroup on a small scale.
He has focused on building the Tokyo-based firm into a one-stop shop for leases, loans, commodity funds, insurance and other services -- not unlike a GE Capital or Citigroup on a small scale.
Thus, traders no doubt are already curious what the next report this Friday will look like, since that will show what the commodity funds did during the heavy sell-off in the latter part of last week, particularly in silver.
FORBES: CFTC Data: Funds Trim Gold, Silver Length Slightly; Next Report To Be 'Much More Telling'
But is the recent gyration in oil prices a function of supply and demand or is it a sudden rush in or out of commodity index funds?
In the early 1980s investors stampeded into commodity trading funds.
The same with copper, silver, any commodity the hedge funds could load up on in hopes of playing the spike.
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Among the mutual fund groups that saw inflows this year as oil prices along with gold and silver have steadily climbed the charts are raw material and commodity-related funds.
FORBES: Mutual Fund Inflows This Year Went To Silver, Gold and Oil
The commodity-linked funds had their first month of positive inflows in March for the year, with 487, 000 ounces of the metal added to the 13 funds tracked by UBS. Although those are a small portion of the overall appetite for money market accounts globally, it represents gains into an area that was unknown a decade ago.
As the commodity ETFs, mutual funds, and Indexes attract more and more investors, their cash positions increase.
Some analysts suggest splitting one's commodity allocation equally across funds with direct exposure to commodities and those that invest in stocks.
These same principles apply to commodity exchange-traded funds and other funds.
In the resulting report, Guru Picks: 35 Profit Makers For Volatile Times, 20 gurus provide 35 investment picks ranging from staid big-cap dividend stocks to commodity exchange-traded funds and low-priced stocks.
The resulting turmoil in commodity markets led a number of hedge funds to speculate widely.
There are low-cost mutual funds that will invest in commodity futures for you.
However, according to the CFTC, Driver was not the astute investor he claimed to be, and the majority of investor funds were not used to trade commodity futures.
There are the purer speculators, which I think of as the professional commodity traders who are trading for themselves or for funds.
Investors poured money into commodity strategies, corporate bond strategies, and Asia focused funds.
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This in part reflects the increased ease of commodity investing through an increased range of products and exchange traded funds.
These exchanged funds (ETFs) purchase a variety of agricultural commodity futures, and increases in the price of wheat, corn, cattle, and other food prices will benefit shareholders of these securities.
Investors have piled into platinum, as seen by the rising net-long positions in the Commodity Futures Trading Commission data and record holdings in exchange-traded funds.
FORBES: METALS OUTLOOK: Watching Platinum After Recent Strength; Gold Targets $1,700
For example, the FDIC has the authority to wind down unstable financial firms, banking regulators have a tighter grip on setting capital standards, the Securities and Exchange Commission will have greater oversight over hedge funds and private equity firms, and the SEC and Commodity Futures Trading Commission will coordinate regulation of derivatives.
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When the bubble created by hedge funds and other speculators popped in the current financial crisis, commodity prices declined.
Today, there are well over 1, 000 index funds and ETFs that track nearly every stock, bond, and commodity market worldwide, and they do it at very low cost compared to active management.
Pension funds and other types of non-traditional users had come into the commodity markets in recent years, but lackluster returns are causing them to rethink those ideas, he said.
FORBES: P.M. Kitco Metals Roundup: Weaker Technical Chart Picture Pressures Gold, Silver
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