Commodity ETFs have been a big growth area for the overall business with demand for energy, food and precious metals rising. Commodities are also seen as a store of value and a potential hedge against inflation. Even with the slower Western economies, the emerging markets are posting economic growth.
The sophisticated investor who is highly weighted in Treasuries may want to consider hedging positions with short Treasury strategies over the medium-term. It is not a question of if higher rates are coming, but more of when will they hit. [Ratings Cut Doesn’t Dent Treasury ETFs.]
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Max Chen contributed to this article.