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Commodities (US Tax)

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
Commodities99.47%
Cash0.53%

Geo


North America64.79%
Greater Europe4.84%
Other30.37%

Sector


Gold16.43%
Platinum6.4%
Silver11.39%
Industrial Metals18.09%
Bitcoin11.55%
Ethereum7.82%
Broad Commodities27.79%

Top Holdings

Asset ClassWeight (%)
1. Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF27.79%
2. abrdn Bloomberg Industrial Metals Strategy K-1 Free ETF18.09%
3. SPDR Gold MiniShares Trust16.43%
4. Grayscale Bitcoin Trust BTC11.55%
5. abrdn Physical Silver Shares ETF11.39%
6. Grayscale Ethereum Trust7.82%
7. GraniteShares Platinum Trust6.40%