Base Metals Diversified Commodity

Base metals diversified ETFs and mutual funds invest the majority of their... Base metals diversified ETFs and mutual funds invest the majority of their assets in a mix of base metals. For example, a fund may own both copper and zinc. These funds tend to be passively managed. They can also own futures contracts. Investors are attracted to base metals diversified ETFs and mutual funds because they offer exposure to multiple base metals at the same time. Base metals can outperform in times of economic growth, and can help investors maintain their purchasing power in times of inflation. The advantage of owning more than one metal at the same time is that an investor doesn’t have all their eggs in one basket. There can be times when copper outperforms lead, for example, and vice versa. Having said this, base metals do tend to move together, in general. A bull market in copper typically happens alongside a bull market in aluminum, for instance. As a result, while these funds may be somewhat diversified, they are still a bet on base metals as a sector. Accordingly, these may be appropriate for investors willing to take on considerable volatility in search of higher returns. Last Updated: 04/23/2024 View more View less

Base metals diversified ETFs and mutual funds invest the majority of their assets in a mix of base metals. For example, a fund may own both copper and zinc. These funds tend to... Base metals diversified ETFs and mutual funds invest the majority of their assets in a mix of base metals. For example, a fund may own both copper and zinc. These funds tend to be passively managed. They can also own futures contracts. Investors are attracted to base metals diversified ETFs and mutual funds because they offer exposure to multiple base metals at the same time. Base metals can outperform in times of economic growth, and can help investors maintain their purchasing power in times of inflation. The advantage of owning more than one metal at the same time is that an investor doesn’t have all their eggs in one basket. There can be times when copper outperforms lead, for example, and vice versa. Having said this, base metals do tend to move together, in general. A bull market in copper typically happens alongside a bull market in aluminum, for instance. As a result, while these funds may be somewhat diversified, they are still a bet on base metals as a sector. Accordingly, these may be appropriate for investors willing to take on considerable volatility in search of higher returns. Last Updated: 04/23/2024 View more View less