Investors looking to take advantage of a commodities sector which many analysts believe has bottomed have looked at different ways of playing this sector. Some have looked to buy individual stocks, while others have looked to ETFs.
With the vast majority of commodities seeing a correction over the past year, prudent investors have waited out the turmoil, looking for the best businesses among the bunch – those which have made the structural and operational changes necessary to navigate this new low-price environment.
With commodities prices potentially having bottomed, now may be the time to take a look at this sector and consider a handful of companies (or perhaps the whole sector) for a given portfolio, with the thesis that share prices of commodities-focused businesses will rebound in the medium to long-term.
In this article, I’m going to take a look at two commodities-focused ETFs which are available for investors seeking exposure to this space.
The first ETF is the GraniteShares Bloomberg Commodity Broad Strategy ETF (COMB) which contains some of the most well-known global commodity stocks operating in both developed and developing markets. This ETF is probably the broadest play on commodities available today for investors looking at the sector from a macroeconomic point of view.
The second ETF is the GraniteShares GCSI Commodity Broad Strategy ETF (COMG) which essentially follows the Goldman Sachs commodities index rather than the stocks covered under the Bloomberg index.
Investor preference as to which platform to follow aside, these two ETFs are great options for any investor looking at commodities today.
