Livestock Diversified Commodity

Livestock diversified ETFs and mutual funds invest the majority of their assets... Livestock diversified ETFs and mutual funds invest the majority of their assets in a mix of livestock commodities. For example, a fund may own both live cattle or pork belly futures. These funds are passively managed, and tend to own futures contracts. Investors are attracted to these Funds because they offer exposure to multiple commodities at the same time. Livestock commodities can outperform in times of economic growth or reduced production, and can help investors maintain their purchasing power in times of inflation. The advantage of owning more than one commodity at the same time is that an investor doesn’t have all their eggs in one basket. There can be times when cattle outperforms pork bellies, for example, and vice versa. Having said this, agricultural commodities do tend to move together, in general. As a result, while these funds may be somewhat diversified, they are still a bet on livestock commodities as a sector. These Funds may be appropriate for investors willing to take on considerable volatility in search of higher returns. Last Updated: 11/26/2024 View more View less

Livestock diversified ETFs and mutual funds invest the majority of their assets in a mix of livestock commodities. For example, a fund may own both live cattle or pork belly futures. These funds... Livestock diversified ETFs and mutual funds invest the majority of their assets in a mix of livestock commodities. For example, a fund may own both live cattle or pork belly futures. These funds are passively managed, and tend to own futures contracts. Investors are attracted to these Funds because they offer exposure to multiple commodities at the same time. Livestock commodities can outperform in times of economic growth or reduced production, and can help investors maintain their purchasing power in times of inflation. The advantage of owning more than one commodity at the same time is that an investor doesn’t have all their eggs in one basket. There can be times when cattle outperforms pork bellies, for example, and vice versa. Having said this, agricultural commodities do tend to move together, in general. As a result, while these funds may be somewhat diversified, they are still a bet on livestock commodities as a sector. These Funds may be appropriate for investors willing to take on considerable volatility in search of higher returns. Last Updated: 11/26/2024 View more View less