With the U.S. economy facing the highest inflation it has seen since the 1970s, investors need to hedge against these inflationary risks. According to GraniteShares founder and CEO William Rhind, commodities have “been one of the best ways to do that.”
“The story of 2022 so far is, you have to have some exposure to commodities in this environment,” said Rhind at Exchange: An ETF Experience 2022.
Speaking with VettaFi editor-in-chief Lara Crigger, Rhind explained that investors with 60/40 portfolios that “had not had any exposure to the commodity market, which was up significantly… are going to have a nasty shock when they open their statements after Q1.”
While Rhind said he loves GraniteShares’ ETFs “all equally,” in terms of inflows, clients appear to love the GraniteShares Bloomberg Commodity Broad Strategy No K-1 ETF (COMB), the firm’s broad commodity ETF.
“What investors are reading about every day is oil prices, sky-high gas prices at the pump, food prices, and they’re looking for a way to hedge those risks,” said Rhind. “And the way to do that is in broad commodities.”
COMB has exposure to the three main groups of commodities (energy, metal, and agriculture).
“You don’t need to be a commodity expert, you just need to know that there’s a broad diversified exposure,” Rhind said.
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