Solutions or Simple Exposure
Commodity market exposure can be bought via passive ETF's. But for investors looking to capture all commodity benefits, active approaches may be smarter.
With Commodities high on the agenda of many professional investors, the question now is how to invest?
Buying an index may be the quickest solution to gain exposure. But there are shortcomings which make active approaches potentially more attractive. What are the issues with passive that active solves?
Read the analysis from commodity investment managers inside RFPnetworks.
The Ideal Portfolio
Commodity investing is gaining a lot of attention due to it's diversification and hedging properties. But building the ideal portfolio is not that simple.
With inflation hitting double digits, investors are once again screening financial markets to source hedges for their portfolio against further price rises. Consequently, commodities are firmly back on the agenda, even at the current elevated prices.
The benefits that commodities bring to a multi-asset portfolio are widely understood - low correlation to other asset classes resulting in a more efficient and diversified portfolio, coupled with hedging properties when inflation is rising.
The bigger challenge is how to build a commodity portfolio that captures all these benefits. It is not as simple as it seems. And finding an investment manager that has the resources and experience to manage such a portfolio is even more difficult.
Get more data, power & control.