As geopolitical tensions have intensified, so too has focus on commodities. While the humanitarian impact is, of course, the most important, there are also significant economic impacts to already-heightened energy costs, inflation, and supply chain disruptions.
In the upcoming webcast, How Global Tension Has Fueled Inflation and Commodities, Robert Minter, Director of ETF Investment Strategy, abrdn; and Steven Dunn, Head of Exchange Traded Funds, abrdn, will discuss how commodities are performing amid the chaos and how the asset class may be a critical component of a well-balanced investment portfolio – both in turbulent times and as a strategic, long-term allocation.
Investors interested in diversifying their portfolios with broader commodities exposure now have several ETF options available to them. abrdn (formerly Aberdeen Standard Investments) offers a line of ETFs to outperform the widely observed Bloomberg Commodity Indices, all without worrying about troublesome K-1 forms come tax season. These funds include the actively managed abrdn Standard Bloomberg All Commodity Strategy K-1 Free ETF (NYSEArca: BCI) and the abrdn 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 benchmark components, but it will hold similar interests to those included in the index, along with short-term investment-grade fixed income securities, money market instruments, specific 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 one and three 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 positions in a basket of commodity futures with a longer maturity of between four and six 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 abrdn Standard Gold ETF Trust (SGOL), the abrdn Standard Physical Silver Shares ETF (SIVR), the abrdn Standard Physical Platinum Shares ETF (NYSEArca: PPLT), and the abrdn Standard Physical Palladium Shares ETF (NYSEArca: PALL). Additionally, the abrdn Standard Physical Precious Metals Basket Shares (NYSEArca: GLTR) acts as a metals catch-all, boasting a mix of gold, silver, platinum, and palladium.
Financial advisors who are interested in learning more about commodity investments can register for the Thursday, April 21 webcast here.