Will metal ETFs continue to fuel commodities in 2018?

After lagging in the first half of 2017, commodities staged a nice comeback in the second half amid continued bullishness in the stock market and an increased appetite for riskier assets. In fact, commodities ended 2017 on a high note, registering the longest rally since 1991, with the Bloomberg Commodity Index, which measures returns on 22 raw materials, capping the 11-day winning streak.

While agricultural commodities were the major losers, industrial and precious metals like palladium, aluminum, zinc, gold, and copper gained on a pick-up in global growth, tight supply conditions, and rising global demand. Energy commodities also gave a strong performance in the back end of the year on easing global supply glut.

A weak dollar added to the strength. The ICE dollar index, which measures the dollar against a basket of six other currencies, recorded an annual decline for the first time in five years, falling in double digits.

Given this, we have highlighted the best-performing ETFs that delivered double-digit returns in 2017 and are expected to continue their strong trend in 2018 as well:

Zacks Investment Research

Zacks Investment Research

Zacks Investment Research is characterized by a team of experts who are passionate about your investing success and is focused on sharing the same reliable investment research they would want for themselves.

You May Also Like