Overview: The L&G Longer Dated All Commodities UCITS ETF is an exchange-traded fund that aims to provide exposure to a wide range of commodities. This ETF invests in commodity futures, allowing investors to benefit from price movements of various assets such as energy, metals, and agricultural products. Its strategy focuses on long-term contracts, which can offer a different perspective compared to ETFs that invest in short-term contracts.
Benefits: One of the main advantages of this ETF is its diversification within the commodities sector, which can help reduce asset-specific risk. Additionally, by focusing on long-term contracts, this ETF may potentially capture long-term price trends, thus providing an investment opportunity for those who believe in rising commodity prices over an extended period. The use of an ETF also allows for increased liquidity and transparency compared to direct investment in commodities.
Risks: Like any investment in commodities, this ETF is subject to significant volatility, influenced by factors such as economic conditions, government policies, and geopolitical events. Commodity price fluctuations can be unpredictable, and investors should be aware of the risks associated with investing in futures contracts, including contango and backwardation risks, which can affect returns.
Investor Profile: This ETF is suitable for investors looking to diversify their portfolio with exposure to commodities, particularly those with a long-term view on commodity price trends. It may be appropriate for investors with a higher risk tolerance, willing to accept volatility in exchange for long-term return potential.
Total Annual Returns, Including Dividends
The drawdown measures the decline in price from its historical high. It helps assess the fund's downside risk. The calculation includes dividends.
| Volatility | Max drawdown | Sharpe ratio | |
|---|---|---|---|
| 1 year | |||
| 3 years | |||
| 10 years | |||
| Max |