Saturday, January 19, 2008

Commodities ETF Purchased

I have previously written about my long overdue decision to stop investing in actively managed funds .

At the same time I have decided that I do wish to keep making regular (or at least reasonably regular) investments using a portion of my savings rather than attempt to make a large scale effort to time the market. This week I made a small investment in the Lyxor Commodities ETF listed on the Hong Kong stock exchange (code: 2809). The ETF tracks the Reuters/Jeffries CRB index which is a basket of 19 commodities ranging from oil (23% weight) to orange juice (1%). The management fee is 0.35% which is a fraction of what most active fund managers charge in Hong Kong. Other expenses are also much lower than for actively managed funds.

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