Does Vanguard have a commodities fund?
The investment seeks to provide broad commodities exposure and capital appreciation. The fund's advisor employs an active investment management approach to invest the fund's assets in commodity-linked investments, which are backed by a portfolio of inflation-linked investments and other fixed income securities.
| Name | AUM (Cr) | 1Y Return |
|---|---|---|
| Invesco India Gold ETF FoF | 67.93 | 19.78% |
| SBI Gold | 1,603.76 | 19.55% |
| Axis Gold Fund | 377.60 | 18.91% |
| HDFC Gold Fund | 1,810.91 | 19.19% |
| Ticker | Fund | YTD Return |
|---|---|---|
| USO | United States Oil | 22.51% |
| BNO | United States Brent Oil | 21.68% |
| SIVR | abrdn Physical Silver Shares ETF | 21.39% |
| SLV | iShares Silver Trust | 21.26% |
There are many different types of commodity funds, including: Index funds. These funds track an index that includes various commodity assets.
Although Vanguard does not offer a pure gold fund, it does offer a fund that invests around one-quarter of its portfolio in precious metals and mining companies, providing indirect exposure to this market: The Vanguard Global Capital Cycles Fund (VGPMX).
Overview. Objective: Vanguard Commodity Strategy Fund seeks to provide broad commodities exposure and capital appreciation.
Three of the most commonly traded commodities include oil, gold, and base metals.
| Coffee | 3.70% | 2.47 USD |
|---|---|---|
| Zinc | 3.18% | 2,788.50 USD |
| Cocoa | 2.37% | 8,860.00 GBP |
| Natural Gas (Henry Hub) | 1.63% | 1.75 USD |
| Tin | 1.44% | 32,636.00 USD |
The most traded commodity is crude oil. Crude oil is used in many products, from petrochemicals to petroleum to lubricants to diesel.
- Source: Vanguard: Data current as of April 2, 2024. Data is intended for informational purposes only.
- Total Bond Market ETF (BND)
- Total International Bond ETF (BNDX)
- Total International Stock ETF (VXUS)
- Total Stock Market ETF (VTI)
How do I buy a commodity fund?
- Physical ownership. This is the most basic way to invest in commodities. ...
- Futures contracts. ...
- Individual securities. ...
- Mutual funds, exchange-traded funds (ETFs) and exchange-traded notes (ETNs). ...
- Alternative investments.
Fidelity® Global Commodity Stock Fund seeks capital appreciation by investing in the commodities asset class, which historically has had lower correlations to traditional equity markets.
The largest commodity ETF is the SPDR Gold Trust (GLD), with AUM of $54.32 billion.
The $1.5 billion Vanguard Precious Metals and Mining Fund was renamed in July to Vanguard Global Capital Cycles Fund as part of a restructuring intended to broaden the fund's mandate and diversify its portfolio. Transitioning to new benchmarks.
VGPMX - Vanguard Global Capital Cycles Fund.
Buying gold, silver, platinum, or other precious metals is sometimes touted as a way to hedge the risks of more traditional investments. However, the prices of these metals can be extremely unpredictable and volatile. Trading in commodities and futures is very specialized and not available through Vanguard.
Gold. No matter what is going on in the market, investing in gold as a commodity always pays off. Gold is one of the world's oldest and best-known ways to make money. Even when the market fluctuates, gold still gives high returns.
Pros and Cons of Commodity ETFs
Commodity ETFs can be good tools for diversifying a portfolio; however, they can present significant risks, such as short-term price volatility.
The Bottom Line. Most Vanguard index mutual funds have a corresponding ETF. The most significant difference between mutual funds and ETFs is how tradable the shares are. ETFs can be bought and sold throughout the day, whereas mutual fund shares price only once per day.
What About Crude Oil? Crude oil is by far the biggest commodity market, and oil prices were the talk of the town for much of 2022.
Which commodity is most profitable?
Crude oil ranks as one of the most traded commodities in the world. Commodity traders who had taken long positions on crude oil last year made a lot of money. Crude oil prices decreased in 2020 as a result of COVID-19 and the consequent global lockdowns. However, the rate of immunisations increased in 2021.
- Gold. Foreign central banks continue to be significant buyers of gold to diversify foreign exchange holdings. ...
- Oil. ...
- Copper. ...
- Platinum and palladium.
A: In the near term, U.S. headline inflation looks likely to moderate, but core inflation has remained stubbornly high. Critically, commodities have tended to benefit from their extremely tight link with both inflation and inflation surprises. We foresee a mild recession in 2023.
Some commodity stocks pay dividends, but not all do. The best dividend stocks don't necessarily pay the highest dividends, but commodity companies with a history of paying reliable dividends and strong financial fundamentals may be worth investigating if you're looking for commodities exposure.
| Commodity name | Symbol | Type |
|---|---|---|
| WTI crude | CL.1 | Energy |
| Brent crude | LCO.1 | Energy |
| Sugar | SB.1 | Agriculture |
| Silver | SI.1 | Precious metal |
