Commodities are known as the raw materials for production processes. Investing in them provides investors with exposure to unique factors that historically have brought diversification and inflation hedging benefits to traditional portfolios. Nowadays, ETFs have expanded the availability of commodity investments providing exposure to single commodities and commodity-linked indexes. At the same time, ETFs have exposed investors to a new set of risk factors that may be unfamiliar to the average investor.
This channel is designed to help you understand commodity ETFs, how they work, how they are built, their risks and their rewards, so that you can decide if commodity ETFs deserve a place in your portfolio.