Gold remains the safe haven hedge for many investors when risks threaten. You need look no further than the price performance and demand this year to understand its value in portfolios.
Regardig getting commodities exposure, gold comprises just one chapter in a playbook outlining other investor opportunities to get assets uncorrelated with the broader market. Of course, gold is certainly shining for a reason.
VettaFi's Head of Research Todd Rosenbluth discussed the Neuberger Berman Commodity Strategy ETF (NBCM) on this week's “ETF of the Week” podcast with Chuck Jaffe of “Money Life.” For more news, information, and strategy, visit the Invest Beyond Cash Channel.
| Name | Quantity | Cost | Value | Profit ($) | Gain (%) |
|---|---|---|---|---|---|
| ED Eric Duncan NorthCrest Asset Manangement LLC | 17,448 | $409,827.17 | $492,033.6 | $82,206.43 | 20.06% |
Christopher C. Powers Farther Finance Advisors, LLC | 1 | $28.03 | $28.25 | $0.22 | 0.78% |
| RM Rich Mowrer Brookwood Investment Group LLC | 17,394 | $487,542 | $491,728.38 | $4,186.38 | 0.86% |
| ARCA Exchange | US Country |
The fund is designed as an investment vehicle that primarily focuses on generating returns through commodity-linked derivative instruments and fixed income securities. With a strategy that leverages the fluctuating values of commodities such as oil, natural gas, agricultural products, and metals, the fund aims to provide investors with a diverse portfolio that can benefit from market trends in these sectors. Additionally, the fund prioritizes capital preservation and liquidity through its investments in primarily investment-grade fixed income securities. These securities not only add a layer of financial stability to the fund's portfolio but also serve as collateral for the fund's derivative instruments, ensuring a balanced approach to risk and return.
The fund invests in various derivative instruments that are linked to the prices of commodities. This includes financial contracts that derive their value from the performance of an underlying commodity, such as futures, options, and swaps. By leveraging these instruments, the fund seeks to capitalize on price movements in the commodities market without the need for direct investment in physical assets.
As part of its strategy to ensure liquidity and preserve capital, the fund invests primarily in investment-grade fixed income securities. These securities include bonds and other debt instruments issued by governments, municipalities, and corporations that are rated as having a relatively low risk of default. The inclusion of fixed income investments in the fund's portfolio provides a stable income stream while serving as a hedge against the volatility often associated with commodity markets.