Pension funds may employ a certain level of conservatism when it comes to handling other people’s money, but in the case of European pension funds, they have been particularly aggressive. That’s especially the case given their bets on commodities this year.

The bets on commodities are warranted given that rising consumer prices amid global inflation are pushing them higher, translating into higher food prices. Circling back to conservatism, the commodity markets are anything but that and can be prone to wild market swings.

“Some of Europe’s largest pension funds are investing billions of euros in volatile commodity markets, risking the hard-earned income of millions of workers while fueling a global hunger crisis caused in part by such investments, a new investigation has found,” an EU Observer article noted.

The bets are also shedding light on another topic, which is deregulation. The EU’s push to deregulate financial markets could make bets even riskier.

“The findings also raise questions over whether the European Union’s continued drive to deregulate its financial markets will worsen the situation in the future,” the article added. “The rules governing the bloc’s capital markets are currently under review.”

An All-Encompassing Fund for Commodities

Investors who don’t know where to start when looking for exposure in commodities can look at the Teucrium Agricultural Fund (TAGS). It’s essentially a one-stop shop for commodities, combining other commodity-focused ETFs under the Teucrium banner.

Whether it’s for a continued inflation hedge or to simply diversify a portfolio with more alternative assets as commodity prices push higher, a broad-based fund like TAGS is worth considering. When it comes to commodities exposure, most investors may think of oil, but agricultural exposure can also provide more commodities diversification.

For investors looking for agriculture exposure who don’t know where to start, this is where Teucrium can fill a void, offering investors an easy solution with this all-encompassing fund. Getting exposure to commodities doesn’t mean investors have to hold various positions, which can complicate their portfolios.

Investors can have it all in the convenience of TAGS. The fund combines exposure to corn, wheat, soybeans, and sugar through other Teucrium ETFs that focus specifically on these commodities, essentially offering investors a fund of funds.

The fund includes the aforementioned Teucrium Wheat Fund (WEAT). To get that broad exposure, TAGS also includes the Teucrium Corn Fund (CORN), the Teucrium Soybean Fund (SOYB)and the Teucrium Sugar Fund (CANE).

For more news, information, and strategy, visit the Commodities Channel.