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In this episode of ETF Spotlight, I speak with Jason Bloom, Head of Fixed Income and Alternatives ETF Product Strategy at Invesco, about commodity ETFs.
Commodities had their best quarter in more than 30 years as they were already benefitting from inflation, and the Russia-Ukraine war supercharged the rally.
Russia is the world’s second-largest producer of natural gas and third largest oil producer. President Biden recently announced the release of about a million barrels of oil per day from strategic reserves for six months to bring prices down. Renewed lockdowns in China have raised demand concerns but many experts predict that oil could hit $200 a barrel in the coming months.
The Invesco DB Oil Fund (DBO - Free Report) and the Invesco DB Energy Fund (DBE - Free Report) hold crude oil and energy-related futures contracts.
Russia and Ukraine are major exporters of grains. Russia is also the world’s top fertilizer exporter. As the conflict shows no signs of easing, Ukrainian farmers are finding it difficult to plant spring crops. Russian grain shipments are also impacted due to sanctions and supply chain disruptions.
Further, the spike in energy prices has raised production and transportation costs of fertilizers, raising the possibility of continued surge in food prices. The Invesco DB Agriculture Fund (DBA - Free Report) invests in agricultural commodity futures contracts.
Many metals have also seen extraordinary moves since the start of the conflict, as Russia is a major producer and exporter of industrial metals, in particular nickel, palladium and aluminum. The Invesco DB Base Metals Fund (DBB - Free Report) tracks an index of three base metal futures contracts.
The Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF (PDBC - Free Report) and the Invesco DB Commodity Index Tracking Fund (DBC - Free Report) provide diversified exposure to 14 commodities though futures. What are the differences between the two?
Tune in to the podcast to learn more.
Make sure to be on the lookout for the next edition of ETF Spotlight! If you have any comments or questions, please email podcast@zacks.com.
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Commodity ETFs in Focus Amid Rising Inflation & Ukraine Crisis
In this episode of ETF Spotlight, I speak with Jason Bloom, Head of Fixed Income and Alternatives ETF Product Strategy at Invesco, about commodity ETFs.
Commodities had their best quarter in more than 30 years as they were already benefitting from inflation, and the Russia-Ukraine war supercharged the rally.
Russia is the world’s second-largest producer of natural gas and third largest oil producer. President Biden recently announced the release of about a million barrels of oil per day from strategic reserves for six months to bring prices down. Renewed lockdowns in China have raised demand concerns but many experts predict that oil could hit $200 a barrel in the coming months.
The Invesco DB Oil Fund (DBO - Free Report) and the Invesco DB Energy Fund (DBE - Free Report) hold crude oil and energy-related futures contracts.
Russia and Ukraine are major exporters of grains. Russia is also the world’s top fertilizer exporter. As the conflict shows no signs of easing, Ukrainian farmers are finding it difficult to plant spring crops. Russian grain shipments are also impacted due to sanctions and supply chain disruptions.
Further, the spike in energy prices has raised production and transportation costs of fertilizers, raising the possibility of continued surge in food prices. The Invesco DB Agriculture Fund (DBA - Free Report) invests in agricultural commodity futures contracts.
Many metals have also seen extraordinary moves since the start of the conflict, as Russia is a major producer and exporter of industrial metals, in particular nickel, palladium and aluminum. The Invesco DB Base Metals Fund (DBB - Free Report) tracks an index of three base metal futures contracts.
The Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF (PDBC - Free Report) and the Invesco DB Commodity Index Tracking Fund (DBC - Free Report) provide diversified exposure to 14 commodities though futures. What are the differences between the two?
Tune in to the podcast to learn more.
Make sure to be on the lookout for the next edition of ETF Spotlight! If you have any comments or questions, please email podcast@zacks.com.