Are you interested in investing in commodities? Unsure how to go about it? Commodities can add some diversity to your portfolio. Now that commodities have become popular many investment products exist to help you get exposure to commodities.

How To Invest in Commodities

One thing to consider when investing is whether you want to invest in just one commodity or a mix of commodities. This decision will narrow down some of your investing vehicle options.

Here is a list of a few ETF fund families:

iShares
PowerShares
ProShares
WisdomTree

iShares offers a Silver ETF (iShares Silver Trust Fund) that invests in silver bullion - wonder if the Lone Ranger ever invested in it?

Commodities can be very volatile. One way to reduce this risk is with diversification. You can invest in a commodity index fund. This gives you exposure to a diverse group of commodities while lowering the risk of exposure to just one or two commodities.

One to consider is the iShares GSCI Commodity-Indexed Trust Fund - but it is heavily weighted to energy commodities.