Exchange-traded funds are the vehicle of choice for investors who are jumping back into commodities markets after avoiding them for years. Oil and gold are the primary purchases. While many believe the buying binge won't last, a recent report from Barclays said: "It is a long time since commodities have been as popular with investors as they have so far this year," estimating that $21.5 billion was invested in commodity ETFs in January and February.
Guggenheim Partners has brought to NYSE Arca an exchange-traded fund giving exposure to the Singapore dollar. The CurrencyShares Singapore Dollar Trust holds Singapore dollars directly, rather than through derivatives or short-term fixed-income securities
ETF Securities registered with the U.S. Securities and Exchange Commission an exchange-traded fund that would hold a basket of precious metals in physical form. The ETFS Precious Metals Basket Trust would buy gold, silver, platinum and palladium bullion. If launched, the ETF will be the first trading in the U.S. that offers a precious-metals basket backed by physical metals. This approach would dramatically reduce investors' exposure to credit risk.
Five exchange-traded funds backed by physical possession of precious metals will be launched on the Tokyo Stock Exchange by ETF Securities. The ETFs will invest in gold, silver, palladium, platinum and a physical precious-metals basket.
Money is pouring into gold exchange-traded funds as turmoil in the world's financial markets leaves investors desperate to find a "lifeboat in a stormy sea." The largest gold-backed ETF in the world is New York's SPDR Gold Trust, which has expanded its holdings by 26% since Lehman Brothers went bankrupt. SPDR Gold owns 765 tons, worth more than $22 billion and up about $6 billion in the past month.