Direct investment of commodity

[June06]

If an invesotor buy an ETF which invest in physical commodity directly, is this kinds of investment belong to direct invest to commodity? Thanks.

 

[pokhim]

yes

 

[S2000magician]

Definitely direct investment.
If you want a direct investment in pork bellies, buy dead pigs. Or buy an ETF that buys dead pigs. Or buy futures/forwards on dead pigs. Or buy an ETF that buys futures/forwards on dead pigs.
If you want an indirect investment in pork bellies, buy Farmer John stock.