Commodity and currency-based ETFs are gaining popularity as investors disappointed with poor returns on traditional investments like stocks and bonds look to diversify their holdings.

According to a new report from research firm Aite Group, assets under management in commodity ETFs hit $118 billion at the end of October, up dramatically from slightly more than $1 billion in 2004. Currency-based ETFs, meanwhile, grew eightfold, from less than $1 billion at the end of 2006 to just under $8 billion at the end of October. Together, they represent about 12% of the overall ETF assets under management, according to Aite.

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