Commodities are a good way to diversify portfolios away from equities as long as investors get exposure to direct investments rather than companies highly correlated to equities
Commodities are an asset class that is quickly capturing investor interest. They provide excellent diversification to traditional assets and bonds due to low or negative correlation. With the positive developments in the commodity markets and through financial progress, new efficient products are allowing investors access to direct commodities investment. Through the creation of separate and visible exchange traded commodity (ETCs) segments, exchanges are recognising both the investor appetitive for simple commodities exposure and also the benefit of these new transparent, listed products. ...
To continue reading this article...
Join Investment Week for free
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes