NBCM ETF

The stock and bond correlations of 2022 challenged traditional portfolios, resulting in many investors looking to further diversify their risk in alternative asset classes even now. For those investors seeking a time-tested portfolio diversifier, commodities may provide opportunities.

Investors seeking to diversify their portfolio often turn to commodities for the low correlations to both stocks and bonds. One fund, the actively managed Neuberger Berman Commodity Strategy ETF (NBCM), offers enhanced diversification opportunities as it invests across commodity types and sectors on a global scale.

China's re-opening continues to have legs in the capital markets with respect to investment opportunities. The second-largest economy has been ramping up its purchasing of commodities from Russia as of late, which could continue to feed commodity-focused exchange traded funds (ETFs).

More harsh weather may lie ahead in a brewing El Niño weather pattern. If so, that could cause a spike in volatility for commodities markets, particularly agricultural commodities.

When it comes to getting commodities exposure, sometimes putting all your proverbial eggs in one basket can have adverse effects. China's uneven recovery, for example, could mean that certain commodities could suffer from reduced demand.

The dust still has yet to settle from the recent spate of bank rescues, which is pushing gold higher as investors continue to question the stability of the financial system.

Even with the transition to renewable energy sources, oil can still see record demand amid high inflation. As such, consider getting exposure to commodities that include oil such as the Neuberger Berman Commodity Strategy ETF (NBCM).

The expectation that the U.S. Federal Reserve will turn dovish with regard to interest rate policy is causing investors to pile into more gold. The precious metal is leading the way for commodities exposure, particularly for the Neuberger Berman Commodity Strategy ETF (NBCM).

Increased demand for commodities could be a byproduct of China's re-opening. As the second-largest economy regains its footing after challenges over the past few years, commodities could stand to benefit.