On May 22, the Commodity Futures Trading Commission issued a Customer Advisory addressing the unique risks associated with certain trading vehicles that use futures contracts or other commodity interests. The CFTC noted that recent market volatility arising from the COVID-19 pandemic has led many investors to purchase shares of trading vehicles that use futures contracts or other commodity interests. It cautioned that, while certain trading vehicles using futures contracts or other commodity interests may be organized as exchange-traded products or mutual funds, they may not behave like traditional exchange-traded funds or mutual funds that invest in stocks, bonds or other asset classes, nor provide investors the opportunity to profit from long-term price gains in the underlying commodity.

The Customer Advisory is available here.