Stock Groups

Stick to broad commodities exposure amid China power crunch, CIO says

[ad_1]

As commodities investors, it is important to remain as diversifiable as possible China’s power crunchAccording to one analyst, global energy prices and raw materials are at risk.

ETF Trends’ Dave Nadig explained to CNBC that even though exchange-traded funds buyers have invested nearly $12 billion in China-based ETFs, it may not be the most profitable strategy. “ETF Edge”This week.

The firm’s chief investor officer and director for research, said Monday that they have begun to comprehend or are just beginning to understand the interconnectedness among the energy markets, industrial production, and industrial metals.

The example of this is the United States Copper Index FundCPER has gained more than 4 percent in the past week, as investors attempt to make a profit on the commonly used metal.

Nadig stated, “It’s a market that requires iron stomach if your trying to make individual call.” Broad, broad baseline exposure seems to be the right way.

It GraniteShares Bloomberg Commodity Broad Strategy No K-1 ETF(COMB) matches that description, he stated.

An investment in commodity futures that span the energy, metals, and soft commodities markets at a low cost, COMB may prove to be a good option for investors. GraniteShares CEO Will Rhind stated in the same interview, COMB is a broad exposure offering.

There are also other investments that can be targeted more specifically, such as gold or oil. Rhind said that there are many other options to target different commodities in a more targeted manner. GraniteShares Gold Trust(BAR).

Rhind explained that ETFs can help you find solutions to your concerns, regardless of whether they are about energy or food prices.

Another analyst in the market suggested that commodities should be avoided.

Matthew Bartolini from State Street, head of SPDR Americas research, said that he didn’t want to “try to be a hero” in the same interview.

Bartolini stated that “a lot of people were burned trying to predict or track the pace of different commodity price, especially oil which is so linked to other parts of the world economy, such as what’s happening in China but also the opening of new markets.”

He suggested that investors instead consider the impact of rising commodity prices on their portfolios. This could result in higher inflation, higher consumer prices, and Treasury Inflation Protected Securities, he stated.

Bartolini advised that you should not try to foresee the unexpected with the many uncertainties in the marketplace. However, it’s possible to just make some basis points on your bond portfolio. This is a difficult task these days.

[ad_2]