The Bloomberg Commodity Index (BCOM), which tracks 23 energy, metals, and crop futures, climbed by +8.0% since war broke out in Ukraine. The gauge has more than doubled from a four-year low reached March 2020, during the early days of COVID-19 pandemic. Sanctions imposed on Russia in response to war on Ukraine has disrupted global commodities trade markets and sent prices through the roof. Russia is a major supplier of energy; agricultural and metal commodities — the aftermath could send markets into gloomier territories.
American Investors: How to invest in soaring commodities
Exchange-traded funds (ETFs) provide easier access to a specific commodity or a basket of commodities. Investors who are looking to invest in ETFs with exposure to commodities can explore the Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF (PDBC), Invesco DB Commodity Index Tracking Fund ETF (DBC), First Trust Global Tactical Commodity Strategy Fund ETF (FTGC), and iShares U.S. ETF Trust iShares GSCI Commodity Dynamic Roll Strategy ETF (COMT) — among other.
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