ETFs
An ETF to play on gold, silver, copper and everything in between
THE S&P 500 and Nasdaq Composite they may be breaking records, but raw materials are also celebrating.
“People are concerned about inflation, whether financial advisors or individual investors. Certainly, based on a lot of economic data in the United States and around the world, this was released this year. Inflation remains persistent, people are feeling it whether they are at the gas pump or the grocery store,” Direxion CEO Ed Egilinsky told FOX Business.
Cheese gained 19%, milk 32% and cocoa 195%, while US crude is up 14%, silver 23%, copper 17.5% and gold 13%.
“I think that translates to people wondering how can I participate in something that I see myself every day? How can I potentially benefit from an investment? I think commodities are a way by which people seek to express that, in different ways,” he added.
The company’s Direxion Auspice Broad Commodity Strategy ETF, ticker COM, provides exposure to hard and soft commodities that can be “long or flat,” which can pivot into sharp swings that are not uncommon in commodities trading raw materials, according to the fund description.
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“It consists of 12 raw materials; in energy, metals, cereals and raw materials. But what makes it different? It is not a static, long, solitary and broad solution”, he detailed. “What is unique is that if a commodity is showing a favorable price trend, that commodity will be long. However, for an individual commodity showing a downward price trend, the commodity will be in cash. So we can be long anywhere from 0 to 12 products and everywhere in between,” he explained.
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“Right now we are long six commodities, gold, silver and copper, as well as crude oil, gasoline and wheat,” he added.
With persistent inflation, a Federal Reserve that has at least one rate cut planned this year, and geopolitical uncertainty, commodity trading could have long legs, especially gold.
The World Gold Council, in its survey of central bank gold reserves released this week, noted that “29% of central banks surveyed intend to increase their gold reserves over the next twelve months, the highest level we have seen since this survey began in 2018. ” “, the data shows.
Original article source: An ETF to play on gold, silver, copper and everything in between