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I remain bullish on commodities, especially with China's stimulus, and recommend the abrdn Bloomberg All Commodity Longer Dated Strategy K-1 Free ETF. BCD focuses on longer-dated futures contracts, reducing contango impact, and offers broad exposure across Energy, Agriculture, and Metals. BCD's K-1 free structure simplifies tax reporting, making it more investor-friendly compared to other commodity ETFs.
Commodities are making a comeback due to Chinese manufacturing resurgence and a strong US economy. The abrdn Bloomberg All Commodity Longer Dated Strategy K-1 Free ETF is a good portfolio addition for 2024. The ETF follows the Bloomberg Commodity Index 3 Month Forward TR and is currently overweight gold and the oil construct.
Commodity prices have been steady in 2023, with mixed performance across different sectors. The bull market in commodities began in 2020 due to central bank liquidity, declining fiat currency values, and low inventories. Geopolitical tensions and economic uncertainties suggest higher commodity prices in 2024, making a diversified approach to commodity exposure important.
BCD is an index-tracking commodity ETF that has delivered competitive returns so far. In regard to its tracking error and expense ratio, I believe this is one of the rare cases of more than fair fees charged for the value it has delivered.
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