In this episode of ETF Spotlight, I speak with Kathy Kriskey, Commodity Strategist at Invesco, about the outlook for commodities. Commodity ETFs have seen renewed interest from investors amid rising geopolitical risks and sticky inflation.
Gold prices have recently surged to new highs, driven largely by record purchases by central banks as well as by consumers in India and China. The precious metal also benefitted from its safe haven status amid rising geopolitical risks, and as a hedge against persistent inflation.
Oil prices shot up recently amid escalating tensions in the Middle East, with Brent crude topping $90 per barrel. Copper prices have surged to a two-year high recently, thanks mainly to the surging demand driven by the AI boom and energy transition.
Adverse weather conditions and crop diseases have led to global shortages in cocoa and coffee. Can the record-breaking rally in cocoa and coffee continue?
The Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF (PDBC – Free Report) invests in futures contracts for 14 commodities across the energy, precious metals, industrial metals, and agriculture sectors.
For broad exposure to agricultural commodities, the Invesco DB Agriculture ETF (DBA – Free Report) is a popular choice. The newer, actively managed Invesco Agriculture Commodity Strategy No K-1 ETF (PDBA – Free Report) , comes with a lower expense ratio.
The SPDR Gold MiniShares Trust (GLDM – Free Report) and the iShares Gold Trust Micro (IAUM – Free Report) are excellent options for long-term, buy-and-hold investors due to their ultra-low fees.
Tune in to the podcast to learn more.
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