Van Eck Launches Hard Assets ETF

It seems pretty clear that the one-year numbers for HAP can be attributed to the surge in agricultural stocks versus the rest of the resource segment. For instance, Monsanto and Potash were up triple digits or close to it.

The knock about blending together energy, agriculture, mining and the like means an investor might lose the benefit of stock picking from those sectors. That may be, expect if you consider the way this cycle has unfolded on the way up and the way down. The good times lifted these groups together, and this summer they all unwound together. Therefore, there may be little correlative benefit to breaking down energy, agriculture and mining into separate picks. But there could be a benefit where volatility is concerned.

HAP is heavy on volatility. There is nothing wrong with some of that in a diversified portfolio but this part of the market is prone to some nasty declines, similar to what occurred this summer. Combining HAP, or MXI or DBN, with other materials holdings that are less volatile might be a better way to go.