Coffee Commodity

Coffee based commodity ETFs and mutual funds invest the majority of their... Coffee based commodity ETFs and mutual funds invest the majority of their assets in futures contracts tied to coffee futures. These can be either Robusta futures or Arabica futures, which are the two global benchmarks. These funds tend to be passively managed and aim to provide exposure for investors who believe the price of coffee is heading higher. Coffee futures are affected by changes in demand for coffee and coffee supply, making it an attractive commodity for investors who are bullish on coffee consumption or bearish on coffee production. As with other commodities, coffee prices are 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 climate changes and changes in drinking habits. As a result, these funds are only appropriate for more aggressive investors. Last Updated: 11/20/2024 View more View less

Coffee based commodity ETFs and mutual funds invest the majority of their assets in futures contracts tied to coffee futures. These can be either Robusta futures or Arabica futures, which are the two... Coffee based commodity ETFs and mutual funds invest the majority of their assets in futures contracts tied to coffee futures. These can be either Robusta futures or Arabica futures, which are the two global benchmarks. These funds tend to be passively managed and aim to provide exposure for investors who believe the price of coffee is heading higher. Coffee futures are affected by changes in demand for coffee and coffee supply, making it an attractive commodity for investors who are bullish on coffee consumption or bearish on coffee production. As with other commodities, coffee prices are 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 climate changes and changes in drinking habits. As a result, these funds are only appropriate for more aggressive investors. Last Updated: 11/20/2024 View more View less