| Welcome Guest, please sign in to participate in a discussion. | Search | Active Topics | |
Registered User
Joined: 4/8/2005
Posts: 16
|
What is the deal with the ipath dow jones commodity ETFs? LD, JJU, JJT, JJN, BAL are just a few examples. The Volume for all of these are below 100k, many below 20k. I dont like trading anything with less than 200k shares a day traded. For example, if BAL corrects back down to the low 70s, i might like to nibble on some, but with 70k shares a day it scares me. I understand they are future based, but i still dont understand the vol issue.
Thanks for the help.
|
|
Registered User
Joined: 1/28/2005
Posts: 6,049
|
Folks have other options:
DBA, DBC, SLV, MOO, GLD,
and so on.
Thanks
diceman
|
|
Registered User
Joined: 7/1/2008
Posts: 889
|
Any of the DB commodity ETFs generate k1 tax forms, so a little pain in the neck.
the iPath individual commodities have low liquidity, but these are ETFs, not stocks, so liquidity is not a factor so long as you get a good execution. And quite frankly, unless you have a futures account, it's the only other way to trade many individual commodities. (i've been long JO and JJN since the breakouts, and I also own JJS) I have purchased these in substantial size blocks and even though the bid/ask spreads look large sometimes, if you put your limit order bid closer to the bid side, you should get a fill.
I wouldn't hesitate to use these.
|
|
|
Guest-1 |