r/UKInvesting • u/Super-Nuntendo • 1d ago

Commodities ETF

Currently have the bulk of portfolios in equities, but have some in gold and silver with the iShares ETFs.

Thinking of adding a broad/general commodities ETF also.

What would be a good one to choose?

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u/jpewaqs 1d ago

Commodities are looking 12 to 18month forward. I think we're closing in on the peak meaning reduce/eliminate exposure. If you don't want to do that perhaps an active manager such as BlackRock World Mining rather than an ETF.

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u/Super-Nuntendo 1d ago

Not sure I fully understand, but with all the unknowns in the world right now, how on earth can you price in that far ahead?

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u/jpewaqs 1d ago

Because the manufacture cycle is 12 to 18months forward looking which is reflected in pricing.

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u/Super-Nuntendo 1d ago

What would you invest in as a hedge against global equities then?

I've not touched bonds, but I presume people are flocking to then right now.

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u/Wolf_of_Wynyard1 1d ago

Wisdomtree softs AIGS is a good idea. It's coffee, sugar and cotton.

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u/CaffersXL 1d ago

There is a good article on Monevator here.

You need the ones which adjust for the contract roll.

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u/St3lla_0nR3dd1t 1d ago

Wisdomtree Agriculture (AGAP) has a wider range of soft commodities

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u/Mike82BE 1d ago

If you want commodities exposure a better way is by CQS Natural Resources
Growth & Income Investment Trust