After years of underperformance, commodity exchange traded funds are finally beginning to turn some heads as investors seek out alternative assets to diversify potential turns in traditional assets like stocks and bonds.
For instance, despite the depressed inflationary environment, many still expect inflation to at the very least hit the Federal Reserve’s 2% target ahead. However, inflationary spikes could catch some off guard.
Aaron Gilman, Chief Investment Officer of Independent Financial Partners (IFP), argued that a commodities portion is a good hedge against the unexpected side of inflation.
“The best product is a commodity type future. The initial shock [in inflation]is good for commodities,” Gilman told ETF Trends.