A Diversified Commodity ETF to Hedge Inflation | ETF Trends

ETF Trends Editor Tom Lydon speaks with Deutsche Bank Commodity Services’ Chief Executive Officer and Chief Investment Officer, Martin Kremenstein, about how investors and advisors can use commodity ETFs in portfolios.

“Commodities have consistently outperformed in inflationary periods,” Kremenstein said. “And so getting commodity exposure in your portfolio is a very good way for advisors to protect against that.”

He says a perennial favorite is gold ETFs, which seem to be a “go-to product” for investors who are worried about both inflation and deflation and want a safety play.

Meanwhile, a broad basket of commodities such as the $6.4 billion PowerShares DB Commodity Index Tracking Fund (NYSEArca: DBC) can also hedge inflation. It’s the largest and oldest futures-based commodity ETF, and provides diversified exposure to energy, agriculture, base metals and precious metals.

Kremenstein also discusses Deutsche Bank’s partnership with Invesco PowerShares and how the firm’s commodity index strategies protect investors against contango and negative roll yield in futures markets.

Watch the video to see the full interview.

The opinions and forecasts expressed herein are solely those of John Spence, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.