Diversified commodities exposure in an ETF
Broad commodities can play a role in portfolio diversification and inflation aware allocations but implementation cost and concentration risk matter.
State Street Investment Management has launched a new Broad Commodities ETF, designed to provide cost efficient, diversified exposure to a broad commodity basket, delivered in an ETF wrapper. The ongoing conflict has underscored the diversification benefits of a broad commodity exposure, relative to more volatile and unpredictable single asset strategies.
A modern approach to broad commodity exposure
The State Street SPDR Commodity UCITS ETF (Acc), has a TER of 12 basis points, the lowest in its class 1 and is built on the Dow Jones Commodity Index (DJCI) 3 Month Forward - Quarterly Reweight Index, which offers:
• Broad and balanced exposure across nearly 30 commodities
• A low-cost ETF wrapper, making commodities more accessible in portfolios
• Equal sector weighting to help avoid energy concentration
• Dynamic, liquidity weighted construction, supporting efficient implementation
• 3-month forward contracts, designed to smooth exposure along the futures curve
