Grains-related exchange traded funds jumped Wednesday after the U.S. Department of Agriculture came out with lower-than-anticipated plantings estimates and inventory. Among the best performing non-leveraged ETFs of Wednesday, the Teucrium Corn Fund (CORN) increased 6.7%, the Teucrium Wheat Fund (NYSEArca: WEAT) rose 5.1%, and the Teucrium Soybean Fund (NYSEArca: SOYB) gained 5.2%.
Commodities have literally been a hot commodity in the capital markets given inflation fears midway through the year, and investors can capture this upside and hedge inflation with the Invesco DB Commodity Index Tracking Fund (DBC) .
Exchange traded fund investors should consider the role commodities can play in a well-balanced investment portfolio. In the recent webcast, Commodities: Disrupted Demand, Disrupted Supply, Continued Opportunities , Robert Minter, Director of ETF Investment Strategy, Aberdeen Standard Investments; and Stan Kiang, Director of Strategic Accounts, Aberdeen Standard Investments, argued that while commodities have always rounded out diversified portfolios, they are becoming even more prominent as we begin to emerge from the global COVID-19 pandemic.
Traditionally, small cap companies come with more risk and volatility than their mid- and large-cap counterparts, but they also offer more upside potential. That’s true across the sector landscape – including in gold miners.
As the capital markets start to fret over rising interest rates, investors can position themselves to soften the blow with commodities, including the Direxion Auspice Broad Commodity Strategy ETF (COM) . “Prices for the building blocks of the economy have surged over the past year,” a Wall Street Journal article explained.
Though the tax implications of REITs can seem arcane, their above-average dividends make the asset class worth a look. The average dividend yield for equity REITs is about 5%, compared to 1.9% for stocks in the S&P 500 Index, according to data from the Motley Fool .
Investable Market Real Estate 25/50 Index sports a dividend yield of 3.50%, almost 110 basis points above the yield on the S&P 500. Real estate investors looking to jumpstart their yield profiles can turn to the PowerShares KBW Premium Yield Equity REIT Portfolio (NYSEArca: KBWY), which tracks the yield-weighted KBW Nasdaq Premium Yield Equity REIT Index.
With the Covid-19 pandemic still a wild card in the current market landscape, diversifying through multi-asset exposure is still important. Assets like the Invesco Growth Multi-Asset Allocation ETF (PSMG) can help. PSMG also has a growth component built into the fund.
A seller’s market and relatively low interest rates have helped to fuel real estate ETFs in spite of the pandemic. ETF provider Invesco has a few funds investors may want to consider for real estate exposure. Real estate ETFs give investors exposure to the asset class without the necessary startup capital necessary to purchase property.
Real estate investment trusts (REITs) were repudiated at the height of the onset of the coronavirus pandemic, and retail REITs were among the most vulnerable owing to increasing adoption of e-commerce. However, some analysts see opportunities reborn with retail REITs.
Exchange traded fund investors should consider how real estate can play a part in their portfolios. The same investors can look to a focused real estate investment trust strategy that targets sustainable income and predictable growth.
What’s the secret behind the eternal youth of Lady Liberty standing tall in New York for over a century? The same dynamic element that has been used by humans for over 10,000 years: copper. The French knew copper would be the ideal element for the Statue of Liberty’s outer layer—being lightweight, rustproof, and strong but easy to shape—when they crafted it as a gift to the U.S. in 1886.
Special purpose acquisition companies (SPACs) were a hot topic for investors in 2020 and continue to be a big story in 2021. While SPACs have lost some of the initial buzz surrounding them, some of the larger names going public via this method are attracting interest from mutual funds and ETFs.
This appears to be the year of reflation . Massive fiscal stimulus from the government combined with the Federal Reserve’s (Fed) loose monetary policies have resulted in an ample, if not excessive, monetary supply. Inflation expectations, measured by 5- and 10-year breakeven rates, have risen to the highest level since 2014.
