ETPs tracking commodity futures can offer consistent returns

Exchange-traded products (ETPs) tracking commodity futures can offer consistent returns and diversification benefits, industry experts say.

ETF Securities (ETFS) head of research and investment strategy Nicholas Brooks says: "Commodity futures returns over the past 10 years have been very strong in most cases, even including the roll yield." Research by Vanguard shows commodity futures have experienced long periods of significant returns. From 31 August 1969 to 30 April 2009, commodity futures produced an average annual return of 9.8%, compared to 9% for US equities over the same period. The firm says although both commodities and equities have had multiple years of returns in the 20% to 40% range, equities tend to experi...