There might be various types of ETFs. Corn ETf is one of them. But, before learning about corn ETF let us give a short focus on what is ETF. The full form of ETF is exchange traded fund which is basically a mutual fund that is exclusively traded on stock exchange market. ETF comprise a host of stocks or financial assets or derivatives which are extensively practiced to use for commodity, currency, sector and industry index in a financial market.
There are several funds had emerged as a booming economic options for investors in recent times. Corn ETF is one of them which influenced a lot in developed and developing economies. The underlying holdings and underlying financial assets of corn ETF comprise the corn future prospects with contracts which are extensively traded on a particular financial platform (like CBOT).
Corn ETF is not an old name in share market or in stock exchange market. Corn ETF or these kinds of related financial development have unveiled themselves only a couple of years ago. Since its first beginning in share market or in stock exchange market, corn ETF has occupied a considerable amount of share or financial contracts.
Corn ETF is designed to track down DJ-UBS corn sub index. DJ-UBS is widely known as Dow Jones-UBS Commodity Index. DJ-UBS is extensively diversified index which allows commodity investors to invest with a single and simple measure to track down commodity future contracts. Under DJ-UBS no commodity can comprise less than 2% and more than 15% of the index. Corn ETF also tracks down DJ-UBS to know future contracts with corn.
Corn ETF provides a capitalized interest return to corn commodity investors. This type of capitalized interest return for corn ETF investors is cumulated daily. So, ETF on corn combines the interest component and excess return from DJ-UBS corn sub index. This combination will finalize a total return investment done for corn investors.
There are a host of benefits which a corn ETF investor can enjoy. The prices for corn along with other agricultural commodities have improved a lot in last 5 years. There is a huge market prospect waiting for corn even for third world economies. Lots of previously grown crops are replaced with corn by farmers only because corn has immense market possibilities to sell out at a profitable price. As a stable amount of corn is being produced every year, the share market index for corn investors would also be profitable.
Most strikingly, it is the rising need of ethanol in place fossil fuels, for all industrialized nations of the world which attracts corn ETF as a lucrative investing option. More development in this sector is yet to come, but, countries like Japan has already paved the way for future industrial uses with ethanol independently. This means corn ETF investors have a bright future prospect.
Interestingly, corn ETF investors can track down corn exchange index in relation to the rising price of oil. Corn ETF tends to rise in value like oil rises in price or value. But, most interestingly corn ETF can procure double benefits for investors as it has also got a seasonal (summer) future. Along with its relation to oil price rising value, corn ETF enjoys extra profit from seasonal boom. Thus, investors would enjoy double benefit, that is, one is a stable corn exchange index and other is seasonal profit on corn ETF.
There are only a few negative ideas related to bad investment with corn ETF till now. This indicates investment in food grains has a very good future prospect. Especially about corn, it is now an excellent profit source for commodity investors. Corn ETF has never seen a bad market day since its first entry to global market. Corn ETF is always rising and improving which indicates tremendous source of profits for investors.
In near future corn ETF is going to unveil itself with surprising news as one of the most profitable sector in stock exchange market to invest. In future more ETF might be seen with fastest growing commodities like rice and corn. So, there is a huge possibility for investors with corn ETF. Investors should procure maximum profits from such kind of investment with stock exchange index market.