Consider a Small Position in Commodity ETFs to Diversify a Portfolio | Page 2 of 2 | ETF Trends

“We’re underweight because of the obvious systemic headwinds commodities face right now,” Yoshikami said, “but we are making a tactical bet that commodities in lesser amounts will be good for the portfolio long-term.”

Kevin Hrdlicka, manager of investment services at Savant Capital Management, who holds a position in DBC, also suggests a 3% to 5% allocation to commodities to reap the potential benefits after the recent pullback.

“The unpredictable nature of when commodities will outperform is exactly why it makes sense to have a small dedicated allocation,” Hrdlicka added.

PowerShares DB Commodity Index Tracking Fund

For more information on the commodities market, visit our commodity ETFs category.

Max Chen contributed to this article.