Gasoline Commodity

Gasoline commodity ETFs and mutual funds invest the majority of their assets... Gasoline commodity ETFs and mutual funds invest the majority of their assets in gasoline futures contracts. These tend to be U.S.-listed derivative contracts and the funds are passively managed. They offer exposure to investors who believe the price of gasoline will increase. Investors are attracted to gasoline as a bet on economic growth. When the economy does well, for example, people tend to drive more. As with other commodities, gasoline 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 currency fluctuations, geopolitical tensions, and weather events impacting refinery supply. Changes in the price of crude oil also impacts the price of gasoline, as it is the key input. As a result, these are only appropriate for more aggressive investors. Last Updated: 11/26/2024 View more View less

Gasoline commodity ETFs and mutual funds invest the majority of their assets in gasoline futures contracts. These tend to be U.S.-listed derivative contracts and the funds are passively managed. They offer exposure to... Gasoline commodity ETFs and mutual funds invest the majority of their assets in gasoline futures contracts. These tend to be U.S.-listed derivative contracts and the funds are passively managed. They offer exposure to investors who believe the price of gasoline will increase. Investors are attracted to gasoline as a bet on economic growth. When the economy does well, for example, people tend to drive more. As with other commodities, gasoline 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 currency fluctuations, geopolitical tensions, and weather events impacting refinery supply. Changes in the price of crude oil also impacts the price of gasoline, as it is the key input. As a result, these are only appropriate for more aggressive investors. Last Updated: 11/26/2024 View more View less