ETF Expert

The mainstream media has put a bright shimmering light on the topic of inflation. Yet for all of the focus on hedging against hyperinflation, fiat currencies and/or a weak dollar, the gleam of precious metal ETFs is less than the "shine" of industrial metal ETFs like copper.

SPDR Gold Shares (GLD) jumped nearly 9% in the first 5 months of 2009. PowerShares DB Precious Metals ETF (DBP) claimed 11.5%, while the Silver Trust(SLV) pole vaulted 29.5%. Nevertheless, the iPath Total Return Copper ETN (JJC) amassed a staggering 50%!

I first mentioned the iPath Total Return Copper ETN (JJC) with respect to the best ETFs for the reflation trade on March 30, 2009. Copper was already on the move. And yet it piled on another 25% in April and May.

Granted, copper may be the ultimate use metal. And China infrastructure demand has sent the commodity skyrocketing. Yet it may be more sensible to invest across the entire "base."

The PowerShares DB Base Metals Fund (DBB) rallied 21% in 2009 with exposure to aluminum, zinc and copper.  That's nearly 10 percentage points greater than PowerShares DB Precious Metals ETF (DBP).

If you'd like to learn more about ETF investing… then tune into "In the Money With Gary Gordon." You can listen to the show "live" or via podcast or on your iPod at this link.

Disclosure Statement: ETF Expert is a web log ("blog") that makes the world of ETFs easier to understand. Pacific Park Financial, Inc., a Registered Investment Advisor with the SEC, may hold positions in the ETFs, mutual funds and/or index funds mentioned above. Investors who are interested in money management services may visit the Pacific Park Financial, Inc. web site.