Earning income from commodity investments typically requires some work and creativity on the part of investors. After all, gold bars
and barrels of oil don’t pay out any income in and of themselves. That
means that investors who want yield from their commodity investments
need to either periodically sell part of their position to replicate
income, or they need to invest in shares of commodity-related companies
that do pay dividends.
As is often the case, ETFs can offer many advantages to investors
(like enhanced diversification). When looking at high-yield ETFs,
though, investors need to exercise some caution. Like mutual funds, ETFs
will sometimes include capital gains distributions and/or returns of
capital in addition to ordinary income dividends. In the case of commodity ETFs,
investors also need to realize that the dividend payout of many foreign
companies can vary significantly from year to year and may include
special dividend payments that boost the backward-looking yield numbers
[for more commodity ETF news and analysis subscribe to our free newsletter].
Please continue here:
http://commodityhq.com/2012/5-highest-yielding-commodity-etfs/
No comments:
Post a Comment