The COVID-19 pandemic created unprecedented short-term supply chain disruptions that are still dominating the headlines and affecting consumers across the globe. While, as the saying goes, the cure for high prices is high prices, it may take years for commodities supply and demand to come back into equilibrium. How can investors capitalize on this shift in the real-goods economy?
In the upcoming webcast, Pandemic, Inflation, Infrastructure: All Signs Point To Commodities, abrdn’s Robert Minter, director of ETF investment strategy, and Stan Kiang, director of strategic accounts, will present how commodities may be a critical component of a well-balanced investment portfolio, and provide a framework for a longer-term, strategic allocation.
Investors interested in diversifying their portfolios with broader commodities exposure also have a number of 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 the need to worry 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 components of the benchmark, but it 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 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 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 the commodities market can register for the Thursday, October 14 webcast here.