Investors flock toward commodities as a hedge against inflation. Over a period of decades, commodities typically keep pace or exceed the rate of inflation. Adding to the appeal, commodities are an asset class that is typically negatively correlated with other asset classes, including stocks and bonds.
The price of commodities is also expected to be positively impacted by the Russia-Ukraine war; Russia is the largest exporter of palladium and is also a significant exporter of other metals. Ukraine and Russia are also major producers of wheat and corn for Ukraine. Thus, the prices of those commodities are expected to rise meaningfully.
There are three types of ETFs that provide exposure to commodities…
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