(C) Reuters. Bullish on Commodities? Buy These 3 ETFs Now
The ongoing economic recovery is driving a rise in commodity prices due to increasing demand from reopening industrial and construction sectors. So, for investors looking to capitalize on rising commodity prices in a relatively less risky manner, the ticket could be investment in popular commodity ETFs Invesco DB Commodity Index Tracking Fund (DBC), VanEck Vectors Oil Services ETF (OIH), and Invesco DB Agriculture Fund (DBA). Let’s discuss.Most economic activities came to a near halt last year due to COVID-19 pandemic-led restrictions and social distancing measures. With the global economy’s gradual recovery, commodity prices are surging this year, due primarily to rising demand from reopening industrial and construction sectors. Supply disruptions are also pushing up commodity prices.
President Biden’s proposed ‘Build Back Better’ infrastructure plan, if adopted, is expected to further boost demand for commodities. While it may be risky to bet on a particular commodity or stock to benefit from rising commodity prices, a less risky way could be to bet on commodity ETFs.
We think the Invesco DB Commodity Index Tracking Fund (DBC), VanEck Vectors Oil Services ETF (OIH), and Invesco DB Agriculture Fund (DBA) are all well-positioned to generate significant returns in the coming quarters. So, it could be worth adding these ETFs to one’s portfolio now.
Bullish on Commodities? Buy These 3 ETFs Now
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