Commodities: In like a lion, and out like a lamb?
A look at how financial markets are living up to old weather proverbs, and what that could potentially mean for commodity investors.
Allocating to commodities can potentially help investors enhance diversification in a traditional portfolio. Commodities have a low correlation to equities and fixed income, which means that they may help reduce overall volatility and provide differentiated sources of returns. At Aberdeen, we focus on commodities through three different lenses:
Precious metals
Broad commodities
Industrial metals
Precious metals
In this subset of the broader commodities universe, we look at gold, silver, platinum and palladium, which have a multitude of uses that run the gamut from jewelry to car exhaust systems. An allocation to precious metals could help improve core risk management, increase portfolio efficiency and serve as a “true alternative” investment.
Our funds:
abrdn Physical Gold Shares ETF (SGOL)
abrdn Physical Gold Shares ETF seeks to reflect the performance of the price of gold bullion, less the Trust’s expenses.
abrdn Physical Palladium Shares ETF (PALL)
abrdn Physical Palladium Shares ETF seeks to reflect the performance of the price of physical palladium, less the Trust’s expenses.
abrdn Physical Platinum Shares ETF (PPLT)
abrdn Physical Platinum Shares ETF seeks to reflect the performance of the price of physical platinum, less the Trust’s expenses.
abrdn Physical Precious Metals Basket Shares ETF (GLTR)
abrdn Physical Precious Metals Basket Shares ETF seeks to reflect the performance of the prices of physical gold, silver, platinum and palladium, in the proportion held by the Trust, less the Trust’s expenses.
abrdn Physical Silver Shares ETF (SIVR)
abrdn Physical Silver Shares ETF seeks to track the performance of the price of the silver bullion, less the Trust’s expenses.
Broad based
Broad-based commodities are the building blocks of our everyday lives. Ranging from energy to grains to livestock, this asset class can potentially help expand portfolio diversification, improve risk management and hedge against inflation.
Our funds:
abrdn Bloomberg All Commodity Longer-Dated Strategy K-1 Free ETF (BCD)
The abrdn Bloomberg All Commodity Longer Dated Strategy K-1 Free ETF (the “Fund”) seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the Bloomberg Commodity Index 3 Month Forward Total Return<sup>SM</sup>
abrdn Bloomberg All Commodity Strategy K-1 Free ETF (BCI)
The abrdn Bloomberg All Commodity Strategy K-1 Free ETF (the “Fund”) seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the Bloomberg Commodity Index Total Return<sup>SM</sup>
Industrial metals
This piece of the broader commodities spectrum includes aluminum, copper, nickel and zinc. These metals offer unique diversification potential supported in large part by the renewable energy transition which will depend on them for the development of renewable technologies and infrastructure.
Our funds:
abrdn Bloomberg Industrial Metals K-1 Free ETF (BCIM)
The abrdn Bloomberg Industrial Metals Strategy K-1 Free ETF (the “Fund”) seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the Bloomberg Industrial Metals Total Return SubindexSM.