Cocoa Commodity

Cocoa based commodity ETFs and mutual funds invest the majority of their... Cocoa based commodity ETFs and mutual funds invest the majority of their assets in futures contracts tied to cocoa futures. These funds tend to be passively managed and aim to provide exposure for investors who believe the price of cocoa is heading higher. Cocoa futures are affected by changes in economic growth and cocoa supply, making it an attractive commodity for investors who are bullish on the economy or bearish on cocoa production. As with other commodities, cocoa is not simply affected by changes in physical supply and demand. Speculators can play a big role in price movements. In addition, prices are often influenced by factors such as geopolitical tensions and currency fluctuations. With regards to the latter factor, it’s important to note that cocoa is traded in British Pounds. As a result, these funds are only appropriate for more aggressive investors. Last Updated: 04/19/2024 View more View less

Cocoa based commodity ETFs and mutual funds invest the majority of their assets in futures contracts tied to cocoa futures. These funds tend to be passively managed and aim to provide exposure for... Cocoa based commodity ETFs and mutual funds invest the majority of their assets in futures contracts tied to cocoa futures. These funds tend to be passively managed and aim to provide exposure for investors who believe the price of cocoa is heading higher. Cocoa futures are affected by changes in economic growth and cocoa supply, making it an attractive commodity for investors who are bullish on the economy or bearish on cocoa production. As with other commodities, cocoa is not simply affected by changes in physical supply and demand. Speculators can play a big role in price movements. In addition, prices are often influenced by factors such as geopolitical tensions and currency fluctuations. With regards to the latter factor, it’s important to note that cocoa is traded in British Pounds. As a result, these funds are only appropriate for more aggressive investors. Last Updated: 04/19/2024 View more View less