In the face of aggressive monetary policies inundating the global markets with liquidity, commodities have stood out as the alternative asset class of choice. Yet what is the best way to approach this age-old investment space?
In the upcoming webcast, Industry Experts on Opportunities in Today’s Biggest Commodities, Jason Bloom, Head of Fixed Income and Alternatives ETF Product Strategy, Invesco; Kathy Kriskey, Product Specialist, Invesco; and Helima Croft, Managing Director, Head of Global Commodity Strategy and MENA Research, RBC Capital Markets, will explain why investors may be focusing on commodities now, and how to effectively diversify traditional portfolios with these alternative assets.
For example, the Invesco DB Commodity Index Tracking Fund (DBC) seeks to track the DBIQ Optimum Yield Diversified Commodity Index Excess Return plus the interest income from the fund’s holdings of primarily US Treasury securities and money market income less the fund’s expenses.
The fund is for investors seeking a cost-effective and convenient way to invest in commodity futures. The index is composed of futures contracts on 14 of the most heavily traded and important physical commodities in the world.
Additionally, the Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF (NasdaqGM: PDBC) is a popular, actively managed commodity ETF play. PDBC tries to negate the negative effects of contango in the commodities market by selecting futures contracts with the highest implied roll yield.
PDBC invests in commodity-linked futures and other financial instruments that provide economic exposure to a diverse group of the world’s most heavily traded commodities. The fund seeks to provide long-term capital appreciation using an investment strategy designed to exceed the performance of DBIQ Optimum Yield Diversified Commodity Index Excess Return Index, an index composed of futures contracts on 14 heavily traded commodities across the energy, precious metals, industrial metals, and agriculture sectors.
Financial advisors who are interested in learning more about the commodities market can register for the Monday, July 19 webcast here.