Home / Best Performing / Inflation Hedge Commodities (Tax-Aware)

Inflation Hedge Commodities (Tax Aware)

A diversified allocation to commodities, to provide an inflation benefit and to diversify from traditional stock and bond exposures.

Strategy Description

Exposure to commodities allows investors to take advantage of 4 key global trends:

  • Sustainability the move to carbon neutrality requires more copper, iron ore, silver, nickel, cobalt, aluminum, etc. This is positive for industrial metals and provides a long-term tailwind
  • Infrastructure the US needs to upgrade infrastructure and China has not developed many parts of the interior. Commodities are required for both countries’ growth / infrastructure plans.
  • Supply producers have carefully managed capex to improve bottom lines and ESG scores, as well as to prepare for a fossil-free world. This limited supply cannot be resolved overnight.
  • Inflation & USD weakness since commodities are finite and priced in USD, their inclusion in portfolios can improve returns in a world of monetary supply expansion and potential inflation.

This strategy invests across the commodity spectrum – precious and industrial metals, agriculture commodities and energy markets. Can be run with or without cryptocurrency exposure, which adds another dimension of diversification and exposure to a potential new asset class.

Daily transparency and liquidity; implementation is via low-cost ETFs to minimize costs

For international investors, available in a non-US version. Please visit our international site for details.

Allocation Breakdown

Asset Class


Equity0
Fixed Income0
Commodities99.43%
Cash0.57%

Geo


America83.12%
Greater Europe16.88%
Developed Asia0
Emerging Asia0
Central/Latin America0

Sector


Gold14.3%
Platinum7.23%
Silver10.47%
Industrial Metals20.12%
Bitcoin3.71%
Ethereum4.73%
Broad Commodities38.86%

Top Holdings

Asset ClassWeight (%)
1. Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF38.86%
2. Abrdn Bloomberg Industrial Metals Strategy K-1 Free ETF20.12%
3. SPDR Gold MiniShares Trust14.30%
4. abrdn Silver ETF Trust10.47%
5. GraniteShares Platinum Trust7.23%
6. Grayscale Ethereum Trust4.73%
7. Grayscale Bitcoin Trust BTC3.71%