PRO: Keeps investor money in separate accounts, which provides flexibility in terms of strategies and leverage.
CON: Depending on the manager's aggressiveness, the investor can lose more than originally invested.
PRIVATE COMMODITY POOLMINIMUM: $25,000
PRO: Provides access to the most current and intricate strategies.
CON: Commodity pools usually have large minimum investments and are available only to accredited investors.
FUND OF FUNDS
PRO: Diversifies an investor's money with multiple commodity trading advisers, which theoretically cuts risk.
CON: Adds another layer of fees to already expensive funds.
PRO: Open to people who make at least $70,000 and have $70,000 in investable assets; it's SEC-registered, and its strategies may be less risky.
CON: Fees are complex, and you can buy or sell only once a month.
PRO: The minimums are low, and you can buy or sell your fund daily.
CON: To meet SEC requirements, funds use watered-down strategies that are a far cry from complex programs run in most managed futures accounts.