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Aluminum or Aluminium has seen a great price rise recently, as well as a lot of volatility. Right from big investment banks, portfolio managers to small investors, each would love to take a share in the Aluminum commodity as an asset class.
As mentioned in the Commodity Classification: Commodity Trading as per Commodity Classification article, Aluminum is classified under the "Industrial Metals Category". Being a heavily used material in various machineries like automobile engines, to kitchen ware, beverages cans, etc., it is a metal commodity which is in heavy demand and the prices of Aluminium see a lot of volatility, both on the upside as well as the downside. Hence, this metal commodity attracts both traders as well as investors for its short term volatility opportunitis for trading as well as long term investment opportunities for investments.
Aluminium ETF List: Trade Aluminium Commodity through List of Aluminium ETF's
Aluminum ETF or Aluminium ETF offer a good and reliable way for various categories of traders and investors to trade in Aluminium. In this article, we provide a list of the available Aluminium ETF or Aluminum Exchange Traded Funds through which traders and investors can take an exposure in Aluminium Trading:Global X Aluminum ETF (ALUM) NYSE:ALUM
Listed recently on the NYSE Arca stock Exchange, this ETF from Global X Fund house tracks the underlying Solactive Global Aluminum Index.
This index tracks the established companies which are in the business of Aluminum, across the globe. Hence this Aluminum ETF from Global X provides a global exposure. The compnaies included in this index are usually the ones involved in mining of bauxite and/or aluminum ore, its refinement and/or the production of aluminum based products.
Recently reported Top constituents are companies like Rio Tinto, Alcoa, Norsk Hydro, etc. Gepgraphically, it has exposure from USA, to HongKong, to Japan, UK, Norway, Greece, etc.
Fund Expense Ratio is 0.69% which is like the typical range for commodity based ETF's and it trades with the stock exchange ticket ALUM and Bloomberg ticker ALUMIV.
iPath Dow Jones-UBS Aluminum Subindex Total Return ETN NYSE:JJU
As the name suggests, this is derived as a sub-index from a larger category of commodity index. This is an Aluminum based ETN or Exchange Traded Note, and attempts to track and match the performance of the underlying Dow Jones-UBS Aluminum Subindex Total Return Index. It is based upon Aluminum futures contracts.
It trades with the ticker JJU and Bloomberg ticker DJUBALTR, on the NYSE Arca stock exchange. Has a bit higher expense ratio of 0.75%
ETFS Commodity Securities Limited ETFS Aluminium LON:ALUM
Being a London UK based Aluminium ETF, this one is from ETF Securities. It is an Exchange Traded Commodity or ETC and it tracks the underlying index DJ-UBS Aluminium Sub-Index (Total Return), which is the same underlying for the iPath Dow Jones-UBS Aluminum Subindex Total Return ETN.
Trading on UK based London Stock Exchange, it has a low expense ratio of 0.49% only. It trades in USD Currency.
ETFS Commodity Securities Limited ETFS Leveraged Aluminium LALU
This Aluminium based ETF from ETF Securities is similar to the previous one in terms of underlying. The only major difference is that this is a leveraged ETF i.e. the returns do not correspond one-to-one with the underlying.
This gives 200% returns for the daily % changes of the DJ-UBS Aluminium Sub-Index (Total Return).
It has a high management fee of 0.98% i.e. double as it is a leveraged ETF.
ETFS Commodity Securities Limited ETFS Leveraged SHORT Aluminium SALU
From LALU to SALU, i.e. Short Aluminium ETF.
This is exact reverse of the previously discussed LALU Levelraged ETF, since it gives -200% daily % returns of the corresponding udnerlying index.
These kinds of leveraged funds are suitable for traders who try to benefit more from directional moves in commodity trading.
Here is a compartive historical performance chart for all the above mentioned Aluminum based ETF's for the past 3 months (Click to Open a larger view)
(Sourced from Google Finance):
Using the above discussed Aluminum ETF (or Aluminimum ETF's), one can take trading and investment positions in Aluminium commodity for trading.
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