ETF Spotlight: Market Vectors RVE Hard Assets Producers
HAP provides an equity-based exposure to the hard-assets space.
Commodities and hard assets have been beneficiaries of the consistent demand for the diversification and inflationary hedging benefits that they provide. At the same time, fundamental drivers are poised to provide positive pressure over the long run. While the proliferation of exchange-traded products has afforded investors convenient exposure to the space, there are a number of ways to gain access to that exposure.
Most broad commodity offerings turn to the use of futures contracts. Some, like Market Vectors RVE Hard Assets Producers ETF (HAP), use equity securities. There are benefits and downfalls to each. Futures-based offerings can provide very good short-term tracking of target commodities. Those looking to benefit from a level of operational leverage and cash flow, however, may want to consider an equity-based offing.
Abraham S.H. Bailin does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.