Even though the Neuberger Berman Commodity Strategy ETF (NBCM) has only been on the market since October, it’s getting some very good attention. In late November, the fund saw a spike in volume. with over 300,000 shares traded on November 21 and again on November 22. Then on December 1, the fund traded over 200,000 shares.
VettaFi’s head of research Todd Rosenbluth said that advisors will often see an exchange traded fund with fewer than 100,000 shares traded daily and think there’s no liquidity.
“But that’s not the case with NBCM, which clearly has ample liquidity to meet higher demand,” he said.
And that demand is noteworthy. After all, Neuberger Berman converted the strategy into an ETF less than two months ago.
“Advisors and institutional investors are not necessarily waiting for a fund to have a long ETF track record if the fund provides the best exposure they are looking for,” Rosenbluth added. “The volume spikes are indicative of Neuberger Berman’s strong capital markets capabilities and shows there is liquidity in the fund despite less than three months of history.”
NBCM invests in commodity-linked derivatives with an active risk-balanced, diversified approach that seeks to minimize the effects of market volatility. Tactical exposure adjustments expand potential alpha sources by considering top-down macro variables among commodity sectors, along with individual commodity outlooks to take advantage of short- and long-term opportunities.
“The firm continually assesses where our investment expertise intersects with client demand and preference for an ETF vehicle,” said Scott Kilgallen, head of North America intermediary client coverage, in a news release announcing the ETF’s launch. “Commodities can enhance strategic asset allocation by providing diversification benefits while potentially mitigating the effects of inflation.”
The fully transparent active ETF’s fixed income holdings are actively managed and designed to preserve capital and serve as collateral for the ETF’s derivative positions while also seeking to generate additional yield. The fund will continue to be managed by Hakan Kaya, David Wan, and Michael Foster.
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