Nickel Commodity

Nickel commodity ETFs and mutual funds invest the majority of their assets... Nickel commodity ETFs and mutual funds invest the majority of their assets in physical nickel or nickel futures contracts. These funds aim to provide exposure to investors who believe the price of nickel is heading higher. Nickel commodity ETFs and mutual funds tend to be passively managed. One common type of nickel commodity fund invests in the physical metal itself. These funds store metal in secure vaults on behalf of investors. Other nickel commodity funds only own nickel futures contracts. These are derivatives that are tied to the price of nickel. Nickel futures usually move in lockstep with the price of physical nickel, but there can be times when it’s more profitable to own futures than physical, and vice versa. Investors are attracted to nickel because it’s a base metal that may do well when economic growth is strong. Nickel is used in steelmaking, and also has applications in electric vehicle batteries. The nickel market is one of the smaller base metal markets. Investor purchases and sales of nickel can still have a large impact on the price. Accordingly, these are only appropriate for investors willing to take on considerable risk. Last Updated: 04/19/2024 View more View less

Nickel commodity ETFs and mutual funds invest the majority of their assets in physical nickel or nickel futures contracts. These funds aim to provide exposure to investors who believe the price of nickel... Nickel commodity ETFs and mutual funds invest the majority of their assets in physical nickel or nickel futures contracts. These funds aim to provide exposure to investors who believe the price of nickel is heading higher. Nickel commodity ETFs and mutual funds tend to be passively managed. One common type of nickel commodity fund invests in the physical metal itself. These funds store metal in secure vaults on behalf of investors. Other nickel commodity funds only own nickel futures contracts. These are derivatives that are tied to the price of nickel. Nickel futures usually move in lockstep with the price of physical nickel, but there can be times when it’s more profitable to own futures than physical, and vice versa. Investors are attracted to nickel because it’s a base metal that may do well when economic growth is strong. Nickel is used in steelmaking, and also has applications in electric vehicle batteries. The nickel market is one of the smaller base metal markets. Investor purchases and sales of nickel can still have a large impact on the price. Accordingly, these are only appropriate for investors willing to take on considerable risk. Last Updated: 04/19/2024 View more View less