Monday, November 7, 2016

WSJ: ETFs That Hold Commodities Could Cause Trouble

By SIMON CONSTABLE

Could exchange-traded funds that hold physical commodities exacerbate price spikes or drops?

The potential is there, some experts say, and in fact may have happened already.

Unlike other investments that track the price of materials, physically backed ETFs are structured in a way that could change the underlying supply-and-demand dynamics in what are often thin markets. Read more here.

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