ETF Commodity Type: Coffee
ETFs, or exchange traded funds, are investment vehicles that trade on a stock exchange. ETFs track a wide range of asset classes including stocks, bonds, commodities, and currencies. Coffee ETFs are commodity ETFs that invest in coffee futures contracts. Coffee futures are standardized contracts that obligate the buyer to purchase a specific quantity of coffee at a set price on a specified date in the future. ETFs provide investors with exposure to the coffee market without the need to take physical delivery of the commodity. ETFs are also more liquid than futures contracts and can be bought and sold throughout the day on a stock exchange. Coffee ETFs provide investors with a convenient way to access the coffee market and can offer diversification benefits when included in a portfolio.