Global X ETFs (Global X) has added the Global X Bloomberg Commodity ETF (Synthetic) (ASX: BCOM) to the Australian Securities Exchange. The ETF offers exposure to a diversified basket of commodities and tracks the Bloomberg Commodity Index 3-Month Forward Excess Return.
"Commodities have historically exhibited low correlations with most assets Australians consider, such as property, shares and bonds. Investment in this asset class enhances the opportunity for investors to gain attractive risk-adjusted returns," said Global X head of investment strategy, Blair Hannon, said.
"BCOM offers exposure to commodities which are some of the most significant to the global economy. They tend to have the largest and most liquid futures markets, making them easiest for investors to access.
Commodities are usually considered a hedge against inflation as their prices tend to rise when inflation is rising. The ETF offers exposure to energy, precious metal, industrial metals, livestock, grains and soft commodities like coffee and sugar.
"BCOM packages all these subcategories into one fund while capturing the performance of the entire commodities asset class for investors. Doing so can help reduce both market and idiosyncratic risks of individual commodities and avoids investors having to try to pick winners in a crowded field," Hannon said.