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.
Recession fears, tariff trade wars, and more plague March markets. As equity drawdowns continue mid-month, investors looking to increase portfolio diversification would do well to consider commodities.
Rising inflation in January, the potential added pressure from tariffs, and ongoing volatility create a strong backdrop for gold price appreciation this year. The precious metal currently makes up the largest holding in the actively managed Neuberger Berman Commodity Strategy ETF (NBCM) as of mid-February.
It's important that investors remember to rebalance their commodity ETF exposure, particularly as equity ETFs had a strong 2024. A commodity ETF can add value to portfolios as it can serve as a portfolio diversifier and hedge against inflation.
The stock and bond correlations of 2022 challenged traditional portfolios, resulting in many investors looking to further diversify their risk in alternative asset classes even now. For those investors seeking a time-tested portfolio diversifier, commodities may provide opportunities.
Investors seeking to diversify their portfolio often turn to commodities for the low correlations to both stocks and bonds. One fund, the actively managed Neuberger Berman Commodity Strategy ETF (NBCM), offers enhanced diversification opportunities as it invests across commodity types and sectors on a global scale.