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Commodity-based funds earning favour

Corn or oil in ETFs can add stability, but ratios matter

Investors have taken to commodity exchange-traded funds, but choosing a fund isn't easy: design hurdles mean seemingly similar funds can have quite different holdings - and different returns.

Most stock indexes weight companies based on market capitalisation, or the total value of their shares outstanding. This calculation isn't feasible for commodities, so index designers have to estimate or take an entirely different approach - and they come up with widely varying results.

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