Two Things Fueling Commodity ETFs

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April 15, 2009 11:02am NYSE:GLD NYSE:USO

commoditiesAs with other parts of the market, certain commodities and their exchange traded funds (ETFs) have shown some signs of life and have started to recover.

Part of this recovery can be attributed to President Barack Obama’s $787 billion stimulus package, which is aimed to target the construction industry, the Federal Reserve’s actions to put more spending money in the hands of consumers and businesses and other similar stimulus packages and interest rate cuts seen around the globe.

Granted crude oil is a far cry from its peak of $147/barrel seen in July, but the volatile commodity has gained about 40% since February of this year.  Take a look at United States Oil (USO), which is up 7.12% over the last month. Many analysts suggest that black gold will continue to be a “hot commodity” because of tensions in oil-producing regions and the rise in the middle class of Asian countries, especially China.

Full Story: http://www.etftrends.com/2009/04/what-has-fueled-the-commodity-etf-spark.html



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