ETF Commodity Type: Aluminum
ETFs are exchange traded funds that are traded on stock exchanges. ETFs are a type of commodity fund and are one of the many ETF commodity funds available. Aluminum ETFs invest in aluminum and aluminum-related companies. ETFs are usually index funds that track a particular index, but they can also be actively managed. ETFs are sponsored by an investment company, and they are bought and sold like stocks. ETFs trade at prices that fluctuate with the underlying asset, which in this case is aluminum. When you buy an ETF, you are buying a shares of a basket of aluminum-related assets, which may include stocks of aluminum companies, bonds issued by aluminum companies, or futures contracts on aluminum. ETFs offer investors exposure to the aluminum market without having to take physical possession of the metal.