While commodities have always rounded out diversified portfolios, they are becoming even more prominent as we begin to emerge from the global COVID-19 pandemic.
In the upcoming webcast, Commodities: Disrupted Demand, Disrupted Supply, Continued Opportunities, Robert Minter, Director of ETF Investment Strategy, Aberdeen Standard Investments; and Stan Kiang, Director of Strategic Accounts, Aberdeen Standard Investments, will discuss why commodities can be a critical component of a well-balanced investment portfolio.
Investors interested in diversifying their portfolios with broader commodities exposure also have a number of ETF options available to them. Aberdeen Standard Investments offers a line of ETFs to outperform the widely observed Bloomberg Commodity Indices, all without the need to worry about troublesome K-1 forms come tax season. These funds include the actively managed Aberdeen Standard Bloomberg All Commodity Strategy K-1 Free ETF (NYSEArca: BCI) and the Aberdeen Standard Bloomberg All Commodity Longer Dated Strategy K-1 Free ETF (NYSEArca: BCD).
BCI tries to provide long-term capital appreciation that exceeds the performance of the Bloomberg Commodities Index. It may not invest in all the components of the benchmark but will hold similar interests to those included in the index, along with short-term investment-grade fixed-income securities, money market instruments, certain bank instruments, and cash or other cash alternatives. The underlying Bloomberg Commodities Index tracks the price of rolling positions in a basket of commodity futures with a maturity between 1 and 3 months.
BCD tries to provide long-term capital appreciation that exceeds the performance of the Bloomberg All Commodity Index 3 Month Forward Index, which tracks movements in the price of rolling position in a basket of commodity futures with a longer maturity between 4 and 6 months.
Investors who want to access precious metals may also consider several physically-backed metals-related ETFs as a way to diversify a traditional portfolio mix, including the Aberdeen Standard Gold ETF Trust (SGOL), Aberdeen Standard Physical Silver Shares ETF (SIVR), Aberdeen Standard Physical Platinum Shares ETF (NYSEArca: PPLT), and Aberdeen Standard Physical Palladium Shares ETF (NYSEArca: PALL). Additionally, the Aberdeen Standard Physical Precious Metals Basket Shares (NYSEArca: GLTR) acts as a metals catch-all. It boasts a mix of gold, silver, platinum, and palladium.
Financial advisors who are interested in learning more about opportunities in the commodities space can register for the Thursday, June 10 webcast here.