Tin Commodity

Tin commodity ETFs and mutual funds invest the majority of their assets... Tin commodity ETFs and mutual funds invest the majority of their assets in physical tin or lead futures contracts. These funds aim to provide exposure to investors who believe the price of tin is heading higher. Tin commodity ETFs and mutual funds tend to be passively managed. One common type of tin commodity fund invests in the physical metal itself. These funds store metal in secure vaults on behalf of investors. Other tin commodity funds only own tin futures contracts. These are derivatives that are tied to the price of tin. Tin futures usually move in lockstep with the price of physical tin, but there can be times when it’s more profitable to own futures than physical, and vice versa. Investors are attracted to tin because it’s a base metal that may do well when economic growth is strong. Supply issues may also cause the price to rise, as Burma is responsible for nearly 50% of global exports. The tin market is very small and can be very volatile. Investor purchases and sales of tin can therefore have a large impact on the price. Accordingly, these are only appropriate for investors willing to take on considerable risk. Last Updated: 05/09/2024 View more View less

Tin commodity ETFs and mutual funds invest the majority of their assets in physical tin or lead futures contracts. These funds aim to provide exposure to investors who believe the price of tin... Tin commodity ETFs and mutual funds invest the majority of their assets in physical tin or lead futures contracts. These funds aim to provide exposure to investors who believe the price of tin is heading higher. Tin commodity ETFs and mutual funds tend to be passively managed. One common type of tin commodity fund invests in the physical metal itself. These funds store metal in secure vaults on behalf of investors. Other tin commodity funds only own tin futures contracts. These are derivatives that are tied to the price of tin. Tin futures usually move in lockstep with the price of physical tin, but there can be times when it’s more profitable to own futures than physical, and vice versa. Investors are attracted to tin because it’s a base metal that may do well when economic growth is strong. Supply issues may also cause the price to rise, as Burma is responsible for nearly 50% of global exports. The tin market is very small and can be very volatile. Investor purchases and sales of tin can therefore have a large impact on the price. Accordingly, these are only appropriate for investors willing to take on considerable risk. Last Updated: 05/09/2024 View more View less