2 Easy Ways to Add Commodities to Your Portfolio
Commodities have outperformed stocks since the start of the year, but many investors have not benefited. Why?
Because if there’s one category where most investment portfolios are lacking market exposure, it’s probably commodities. Unless you live on a farm, most of us don’t have enough storage space for 150 barrels of crude oil (NYSEARCA:USO) or a herd of cattle (NYSEARCA:COW).
Like any asset class, commodities have their advantages and drawbacks.
Although commodities (NYSEARCA:CORN) don’t have earnings or dividend/coupon income like stocks or bonds, they diversify your money and can even hedge against the threat of future inflation.
In my latest video, I examine two easy ways for people to add low cost market exposure to commodities (NYSEARCA:DBC). In my analysis, I examine equity sectors (NYSEARCA:XLB) whose performance is closely tied to commodities along with commodity based ETPs that use futures contracts on specific commodities to obtain their market exposure.