...MORE...Since the supply of coffee is largely dominated by emerging market countries, like Brazil and Vietnam, itsinherent volatility and potentially lucrative returns make trading the commodity highly appealing to investors and traders alike. And thanks to the development of the exchange-traded fund industry, investors now have several ways to gain access to this popular soft commodity. Below, we outline the two most popular coffee ETFs and which one will fit your investment objectives.
iPath DJ-UBS Coffee Subindex Total Return SM Index (NYSEARCA:JO)Quick Stats (10/1/2012)
- Total Assets: $39.3 million
- Average Daily Volume: 63,000
- Expense Ratio: 0.75%
- In Depth: JO Analyst Report and ETFdb Realtime Rating
In 2008, Barclays iPath introduced the first ever coffee ETN to the markets. Since then, JO has been gaining popularity in the investment world, catching attention from investors and traders alike. The cleverly-named fund tracks an index that consists of only one futures contract on coffee. JO’s simplicity and effectiveness have allowed the fund to amass nearly $40 million in total assets under management, and to maintain a relatively healthy trading volume of about 63,000 shares a day on average. It is important to note however, that JO is structured as an exchange-traded note, meaning investors will be exposed to the potential credit risk of the issuing institution [see also Jim Rogers: The Agriculture Industry is Doomed].JO is Right for You if: You are an active trader seeking to either speculate on coffee’s movements or quickly execute positions in the commodity....
HT: Insider Monkey
