-
Step 1
Commodity ETFs are made up of futures or asset-backed contracts. For instance, you will own a contract for barrels of oil and not the actual barrel of oil. Oil and gold are the most popular commodity ETF's that are bought and sold.
-
Step 2
To buy a Commodity ETF, you first need a brokerage account and some money to invest. Once you have that, you now have to find the right Commodity ETF to invest in. As mentioned above, gold and oil are the most popular to invest in. There are also agriculture and energy commodity etf's.
-
Step 3
To find the right etf for you, decide what ETF will best suit your portfolio. If you want to hedge against a market downturn, invest in a Gold ETF. As the stock market goes down, gold usually goes up. People resort to gold as a safe bet and you can benefit from this by using it as a hedge in your portfolio.
-
Step 4
Once you have found the right commodity ETF for you and your portfolio, write down the ticker symbol. Ticker symbols for ETF's are usually 3 letters long. To buy a commodity ETF, simply log into your online broker account and place the trade the same way that you would a regular stock. If your account is not online, call your broker and place the order as you always would.
-
Step 5
There are also numerous lists of commodity ETF's available on the internet. I have provided a link for a list of GOLD ETF's in the resource section.
