This increases the trading cost in the form of a wide bid/ask spread. The ETN added about 28% in the last one year. We expect Cocoa to be the clear winner in agricultural commodities space over the long haul. It is the only product in the soft-commodity ETF world exhibiting consistency.
How are cocoa and other commodities ranked?
Cocoa and all other commodities are ranked based on their aggregate 3-month fund flows for all U.S.-listed ETFs that are classified by ETF Database as being mostly exposed to those respective commodities. 3-month fund flows is a metric that can be used to gauge the perceived popularity amongst investors of Cocoa relative to other commodities.
Is cocoa a high-potential commodity?
Cocoa is among those high-potential commodities. Prices of cocoa are hovering around the three-year high level so far in 2014 on top of last year’s gain of about 25%, while the Dow Jones UBS commodity index fell 10% in 2013.
