NEW YORK (ETF Expert) -- Virtually all riskier assets gained significant ground in August. Yet, few have been as impressive as things like grains, oil and gold. Even the beaten-down industrial metals like copper and aluminum appear to have found their footing.
Is it because Europe is growing its way out of its recession? Hardly. Euro-zone leaders from Germany to the Netherlands still want a modicum of financial discipline out of Spain and Greece in exchange for their upcoming bailouts.
Is it because probable China stimulus will create more demand for a wide variety of commodities? Perhaps. Yet, Chinese leadership has been very deliberate in its determination on how best to enhance its already impressive expansion since the late 1980s. In essence, whatever measures the Chinese leadership take may be modest.
So if demand for "stuff" remains questionable and supply is adequate (not counting the drought-damaged agricultural sub-sector), why are across-the-board commodities rising with impressive momentum? Are commodities simply positioned well to benefit from the present-day "risk-neutral" environment? Here are some popular commodity ETFs to play if you expect the Federal Reserve to deliver on a third round of quantitative easing, or QE3, with percentage growth for the past five days and the past month, respectively.
iShares Silver Trust (SLV),
5.2% for five days, 16.1% for month
PowerShares DB Precious Metals (DBP), 2.5%, 7.8%
SPDR Gold Shares (GLD), 1.9%, 5.7%
PowerShares DB Energy (DBE), 1.8%, 6.1%
PowerShares DB Commodity (DBC), 1.5%, 4.7%
iPath DJ AIG Grains ETN (JJG), 1.4%, 2.0%
iPath DJ Copper (JJC), 0.0%, 3.1%
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV