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Commodities Briefing - Categorized | ETFs / ETCs, Investment more

Are commodities an asset class?

Posted on 07 February 2013

Global investment in commodity-based exchange-traded products, structured notes and index swaps totalled approximately USD100 billion in 2006. Six years later, this number had risen to a record high of USD415bn. This is largely explained by the fact that commodities are now standard components of strategic asset allocation as they generate equity-like returns in the long run, act as risk-diversifiers, and serve as an inflation-hedge.
However, given the practical, regulatory and ethical difficulties of investing in physical commodities, the challenge of choosing from a bewildering multitude of index products, and the recurring bull and bear markets in commodities, “the decision to invest in a diversified commodity hedge fund manager seems almost a no-brainer” (Source: Barclays Capital - Hedge Fund Pulse, September 2011)………………………………………..Full Article: Source


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VRS - who has written 36109 posts on Opalesque Commodities Briefing.


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