Investing In A Pure Play Nickel Exchange Traded Product With This Nickel ETN

“There is currently only one pure-play nickel exchange-traded product on the market right now: the iPath Dow Jones-UBS Nickel Subindex Total Return ETN (NYSE: JJN). You could do worse than (JJN), which is currently up 29 percent YTD and has risen a whopping 145 percent since this time last year,” Julian Murdoch Reports From Hard Assets Investor.

    Return
  % Nickel (as of) YTD 1 Year
(JJN) 100% (Synthetic) 29% 145%
(RJZ) 4.739% (1/26/10) 1.82% 56.77%
(UBM) 8.95% (6/30/09) 2.45% 56.66%
(JJM) 15.17% (2/28/10) 3.7% 80.01%

Murdoch goes on to say, “But if you’re looking for nickel exposure as part of your broader commodities portfolio, three other exchange-traded products offer nickel in their holdings. Their weightings range from about 5 percent in the Elements Rogers International Commodity Index Metals Total Return ETN (NYSE: RJZ) to almost 9 percent in the UBS E-TRACS CMCI Industrial Metals Total Return (NYSE: UBM) and just over 15 percent in the iPath Dow Jones-UBS Industrial Metals Subindex Total Return ETN (NYSE: JJM)”

“If companies are more your style, Vale (VALE), BHP Billiton (BHP) and Xstrata are three of the largest producers of nickel globally; if you currently hold these companies, then you’re already set for nickel exposure. For a pure play, Russian company Norilsk Nickel is one of the largest nickel producers in the world, though with its recent agreement with the Russian government to set up a new airline (not to mention the complexities of investing in an OTC stock), it may not be as pure of a play as you think,” Murdoch Reports.

See the full article for more analysis on the Nickel Market: HERE

Here are some details on the ETFs mentioned in the article below:

The investment (JJN) seeks results that correspond generally to the price and yield performance, before fees and expenses, of the Dow Jones-UBS Nickel Total Return Sub-Index. The note is designed to reflect the performance of nickel. The index is composed of the Primary Nickel futures contract traded on the London Metal Exchange.

Chart for iPath DJ-UBS Nickel TR Sub-Idx ETN (JJN)

The investment (RJZ) seeks to replicate, net of expenses, the Rogers International Commodity Index Metals Total Return index. The index represents the value of a basket of 10 metals commodity futures contracts.

Chart for ELEMENTS Rogers Intl Commodity Metal ETN (RJZ)

The investment (UBM) seeks to track the price and performance yield, before fees and expenses, of the UBS Bloomberg CMCI Industrial Metals Total Return index. The fund is designed to be representative of the entire liquid forward curve of each commodity. The index measures the collateralized returns from a basket of diversified industrial metals futures contracts. It is comprised of the five industrial metals futures contracts included in the CMCI with five target maturities for each individual commodity.

Chart for UBS E-TRACS CMCI Industrial Mtls TR ETN (UBM)

The investment (JJM) seeks results that correspond generally to the price and yield performance, before fees and expenses, of the Dow Jones-UBS Industrial Metals Total Return Sub-Index. The note is designed to reflect the performance of industrial metals. The index is composed of four futures contracts: aluminum, nickel, zinc, and copper.

Chart for iPath DJ-UBS Ind Metals TR Sub-Idx ETN (JJM)

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