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BFG Metals & Commodities
The objective of the BFG Metals & Commodities strategy is to provide long-term capital appreciation through investing in select raw materials by actively managing positions of exchange-traded funds and products (ETFs and ETPs).
What are Metals & Commodities?
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Metals & Commodities refers to select set of raw materials that are either consumed directly (corn, sugar) or used to create other products (gold, lithium, oil). This strategy actively manages positions of exchange-traded funds and products (ETFs & ETPs) that directly track commodity indexes within precious metals, rare earth minerals, agricultural products, and energy.
Benefits of Investing in Metals & Commodities
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Diversification: Commodities tend to provide returns that differ from stocks and bonds. A well-structured portfolio can benefit from non-correlated assets to better manage volatility and overall risk.​
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High potential returns: Global demand for metals and commodities has continued to rise over the recent years, leading to higher prices. Effective management of the fluctuation of individual commodity prices within the strategy may lead to above-average returns​
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Hedge against inflation: ​Inflation can diminish the value of stocks and bonds, while at the same time resulting in higher values for metals and commodities. The strategy may provide a defense against the impact of rising prices
Risks of Investing in Metals & Commodities
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Commodity prices can be volatile and be affected by world events and economic conditions.
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Volatility caused by political, and currency instabilities.
Why We Invest in Metals & Commodities
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Besides the clear benefit of hedging against inflationary pressures and overall diversification by reducing correlation to other markets such as equities and real estate, specific types of metals and commodities may also become considerably more valuable as the world becomes more focused on environmental initiatives as well as increased consumption through global economic growth.
Here are a few positions held in this strategy...
iShares Gold Trust is an ETF that invests in physical gold. The fund seeks to track the daily performance of the price of gold bullion.
United States Oil Fund is an ETF that invests in oil futures contracts. The fund seeks to track the daily spot price of light sweet crude oil.
The Global X Lithium & Battery Tech ETF (LIT) invests in the full lithium cycle, from mining and refining the metal, through battery production.
The Teucrium Soybean Fund (SOYB) provides investors an easy way to gain exposure
to the price of soybean futures in a brokerage account.