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WisdomTree’s Enhanced Commodity Carry ETC captures the carry premium by going long deferred and short front-month futures across the commodity curve. Using a systematic, market-neutral approach, the strategy balances performance and liquidity to deliver diversified, non-directional exposure to commodity roll yield.
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WisdomTree’s Enhanced Commodity Carry ETC captures the carry premium by going long deferred and short front-month futures across the commodity curve. Using a systematic, market-neutral approach, the strategy balances performance and liquidity to deliver diversified, non-directional exposure to commodity roll yield.
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The broad commodities market has seen a strong start in 2025, defying macroeconomic challenges. In this blog, WisdomTree spotlights natural gas, aluminium, coffee, and gold, exploring the key drivers behind their bullish momentum.
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In the Year of the Snake, we seek ‘antivenoms’ against risks like trade wars, a strong US dollar, and China's economic struggles. We see strong opportunities in gold, silver, aluminium, copper, zinc, and European natural gas, which have resilient drivers. As policies clarify, fears may ease, leading to a relief rally. Until then, we rely on these protective investments.
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The classic 60/40 portfolio—60% stocks and 40% bonds—has long been a staple for investors. However, replacing bonds with commodities can outperform the traditional 60/40, offering better returns and protection during inflationary periods. Even a small allocation to commodities instead of treasuries enhances the portfolio's risk-adjusted returns.
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Since March 2024, broad commodities, led by precious metals, have surged due to geopolitical tensions and oil disruptions. The WisdomTree Broad Commodities UCITS ETF (PCOM) provides exposure to broad commodities incorporating physical gold and silver. Physical precious metals outperformed synthetics, boosting PCOM's performance.
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Broad commodities are a great portfolio diversifier and have proven to be an excellent inflation hedge in recent years. In this blog, we compare an optimised commodity strategy with a standard commodity benchmark and find that for long-term investors, the optimised strategy is superior in many dimensions.
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