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
Commodities
99.52%
Cash
0.48%
Geography
America
85.46%
Greater Europe
14.05%
Sector
Broad Commodities
33.17%
Gold
22.77%
Silver
20.35%
Platinum
12.25%
Industrial Metals
10.98%
Top Holdings
Position
Weight(%)
1.  
Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF
33.17
2.  
iShares Gold Trust
22.77
3.  
iShares Silver Trust
20.35
4.  
Aberdeen Standard Physical Platinum Shares ETF
12.25
5.  
Invesco DB Base Metals Fund
10.98
Position
Weight(%)