Cotton ETF's and Online Banking

Cotton ETF's and Online Banking

Cotton ETF's and Online Banking

The collateral is mark to market daily and held by the collateral manager in a segregated account. The Cotton ETFs are looking more attractive in today's financial environment since the current bank rates are still being kept artificially low by the FED.

While the commodity cotton has been in demand for centuries, the need and usefulness for it on the global market has made investing in the cotton ETFs a very lucrative prospect. At this time, there is only one ETF totally dedicated to cotton. This is the iPath Dow Jones UBS Cotton Subindex Total Return ETN (BAL).

The 52-week fluctuation of this investment has seen a low of $35.64 and a high of $111.66. At the close of February 18, 2011, the price was at $98.06. The average trading volume of this investment is at 36K.

At the beginning of 2010, the price for a pound of cotton on the world market was $0.75. By the end of 2010, the price had over doubled to $1.76. This was due in part by the growing demand for this commodity from China.

America used to be the highest producer of cotton in the world. That is no longer true; China is now the largest, followed by India, then the US. Australia is also a major exporter of cotton and the recent weather problems down under have helped the cost of cotton to rise on fears that their crop harvests have been diminished.

The return on this investment was only 28.59% in 2008. It grew to 96.22% in 2010 and has a YTD in 2011 of 34.24%. This is a very volatile investment, which can result with great wealth if your timing is right. Just remember the greater the risk, the more potential for profit and this cotton ETF's profit potential is great at this moment in history. Thus the best option would be to invest in these ETF's and harvest all the profits that one can in a short span of time.

We strive to bring you the latest and most accurate data possible from the home sites of the financial institutions we name. Always remember, the bigger the risk, the larger the reward or loss. Invest with caution.

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