Metals ETFs and Investing in Base and Industrial Metals

Workers in a steel factory
••• Buena Vista Images/ Stone/ Getty Images

There’s no doubt that when it comes to metals, gold and precious metals get all of the press. And that includes the world of investing. With the economy and market acting as crazy as they are, gold ETFs and precious metal ETFs are as popular now as they ever were. But that doesn’t mean investors should forget about the “other” metal ETFs.

Base metals and industrial metals are important commodities in sectors such as construction and technology, so they shouldn’t be ignored. Whether you are looking to diversify your portfolio or see an opportunity with metal commodities, you should consider metal ETFs for your investing strategy.

There are a quite few different types of metal ETFs to consider for your portfolio. Some metal funds target metals as commodities, using futures to track the underlying target assets. While some other ETFs target company stocks that are involved in the mining, exploration, or distribution of the metals. There are also inverse, ​leveraged, and international metal ETFs and some metal ETNs as well.

And one of the best advantages of ETFs is the ability to enter certain sectors or invest in certain markets without loading up on equities or battling index basket pricing. Instead, you can get instant exposure to Israel markets or companies with one easy transaction.

So if you are now interested in these types of funds, here is a list of metal ETFs for your research.

List of Base and Industrial Metals ETFs and ETNs

  • BDD - Power Shares DB Base Metals Double Long ETN
  • BDG - Power Shares DB Base Metals Long ETN
  • BOM - Power Shares DB Base Metals Double Short ETN
  • BOS - Power Shares DB Base Metals Short ETN
  • DBB - Power Shares DB Base Metals ETF
  • GRWN - iPath Pure Beta Softs ETN
  • HEVY - iPath Pure Beta Industrial Metals ETN
  • JJM - iPath DJ UBS Industrial Metals Total Return Sub Index ETN
  • PICK - iShares MSCI Global Select Metals & Mining Producers Fund
  • PSTL - Power Shares Global Steel ETF
  • REMX - Market Vectors Rare Earth Strategic Metals ETF
  • RJZ - ELEMENTS Rogers International Commodity Metal ETN
  • RGRI - RBS Rogers Enhanced Industrial Metals ETN (recently closed)
  • SLX - Market Vectors Steel ETF
  • UBG - UBS E TRACS CMCI Industrial Metals Total Return ETN
  • UBM - UBS E TRACS CMCI Industrial Metals Total Return ETN
  • USMI - United States Metals ETF (recently closed)
  • XME - SPDR S&P Metals & Mining ETF

So we have a nice set of investment choices and we will continue to add to this list as more metal ETFs are created and update it of any are delisted. So don’t forget to check back on this list from time to time to see if any other industrial or base metal ETFs are added or if any are removed. We will update the list when things change. And if you want more details on any of these funds, click on the highlighted link to a more detailed summary of each ETF.

As with any investment, a company stock, mutual fund, an ETF, Index or otherwise, please make sure you thoroughly research this exchange-traded fund or any financial asset before making any trades (long or short). Conduct your due diligence, watch how these funds react to different market conditions, take a look under the hood and see what is in the funds. And if you have any questions or concerns, make sure you consult a stockbroker, a financial advisor, or another financial industry professional.

While ETFs have many advantages, they have many disadvantages as well (as does any investment). So it is very important to understand the investment vehicle before you trade it. But once you have a full understanding of these metal ETFs, you can consider adding either or both to your portfolio. And good luck with all of your trades!

Disclaimer: At the time of publication of this list of metal ETFs, I do not have any open positions in the above funds - Mark Kennedy.