Diversifying with a Broad Commodity ETF | ETF Trends

Commodities have been falling behind over the past year, but investors who believe the winds are shifting can take a look at an actively managed commodity exchange traded fund option.

On the upcoming webcast, The Evolved Commodity ETF Landscape and Diversification Benefits, Kevin Baum, vice president and senior portfolio manager at Invesco PowerShares, and Lorraine Wang, head of global ETF products & research at Invesco PowerShares, argue that there is value in commodity assets and point to an ETF option to re-position for 2015.

Specifically, commodities offer diversification qualities and allow investors to access global economic growth.

“Because most commodities have a similar value across the globe, they tend to trade independently of any country’s domestic economy, and their prices are largely determed by global supply and demand forces,” according to a research note, titled PowerShares DB Commodity & Currency ETFs.

Moreover, commodities help hedge against inflation. While inflation remains muted now, inflationary pressures could rise as the U.S. economy continues to expand.