Commodity ETFs are finally appearing on investor radars

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Investors are beginning to pick up the commodity trade as gold prices (GC=F) remain elevated after reaching an all-time high this week. Even uranium (UX=F) is seeing upward price momentum.

ETF Think Tank Director of Research Cinthia Murphy joins Wealth! to discuss the growing relevance of commodities and commodity-exposed ETFs for investors.

"We're seeing a lot more commentary from the market experts, the analysts, about the importance of commodities and the opportunity in commodities, which has been a segment that's typically under-owned in the advisory channel. It's under-owned by most investors, and it's at attractive positions right now because they're so overlooked so often, especially in the middle of a tech craze."

For more expert insight and the latest market action, click here to watch this full episode of Wealth!

Editor's note: This article was written by Luke Carberry Mogan.

Video transcript

- Well, gold hitting a record high this morning amid growing tensions in the Middle East. And speculations about the US interest rate cut pathway. Investors appear to be moving into what are traditionally considered safe haven assets. So can you include commodities into your portfolio? Let's bring in Cinthia Murphy who is the ETF Think Tank director of research to discuss more. This is part of our ETF Report brought to you by Invesco QQQ.

Great to have you here once again with us, Cinthia First and foremost, the commodities ETFs-- how much of a bid are they catching now that we're seeing some of these new all time highs or the new highs in gold?

CINTHIA MURPHY: Hi, Brad. They're finally hitting everybody's radar. I mean, as you know, people look to commodities when they're trying to hedge against inflation, when we're looking to diversify portfolios. But in the last year or so, it's been all about big tech. So people have paid very little attention to the diversifiers because everybody was trying to ride that tech wave.

And this year, that's starting to change. So we're seeing a bit under commodities, we're seeing a lot more commentary from the market experts, the analysts, about the importance of commodities and the opportunity in commodities, which has been a segment that's typically under owned in the advisory channel, it's under owned by most investors. And it's at an attractive positions right now because they're so overlooked so often, especially in the middle of a tech craze. So this has been an interesting moment for these types of investments right now.

- It's particularly interesting, especially given some of the concerns that we've had really murmuring about now, and a loud murmur, about the economy and the likelihood of a recession and where that has actually perhaps fueled some demand for assets like gold. How have you been evaluating that?