CFTC Highlights Risks of Commodity ETP and Fund Investments

The CFTC highlighted the risks of investing in commodity-related exchange-traded products ("ETPs") or funds ("ETFs") and encouraged investors to review the disclosures carefully.

In a customer advisory, the CFTC stated that due to recent market volatility, investors may now seek to profit from a recovery in certain commodity prices or to diversify their portfolio. The CFTC encouraged investors to understand the unique risks associated with energy commodities and related-futures contracts by (i) researching the industries that utilize the commodities invested, (ii) examining what conditions could influence commodities' prices and (iii) continuously monitoring conditions.

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