Investing in commodities
Investing in commodities requires special skills and expertise. We'll provide access to the small universe of experienced managers we've identified as being capable of implementing these complex strategies.
Why choose Russell Investments for commodities investments?
Broad, global commodities investing—not just gold and oil
Adding commodities to a portfolio invested in stocks and bonds can help manage risk and potentially improve returns. Commodities cover a broad range of real assets, including live cattle, wheat, corn, soybeans, copper, aluminum, nickel, gold, oil and coffee. We offer global access to the dynamic growth of both the developed and developing markets.
Long-term return potential through active management
Active managers can try to outperform passive indexes by using opportunistic "roll-timing strategies" around the index commodity roll periods (delaying the purchase or sale a few days after the index trades), over or under-weighting sectors or individual commodities, buying commodities that aren't in the index and other active strategies to take advantage of potential mispricing opportunities.
Please remember that all investments carry some level of risk, including the potential loss of principal invested. They do not typically grow at an even rate of return and may experience negative growth. As with any type of portfolio structuring, attempting to reduce risk and increase return could, at certain times, unintentionally reduce returns.
Commodity futures and forward contract prices are highly volatile. Trading is conducted with low margin deposits which creates the potential for high leverage. Commodity strategies contain certain risks that prospective investors should evaluate and understand prior to making a decision to invest. Investments in commodities may be affected by overall market movements, and other factors such as weather, exchange rates, and international economic and political developments. Other risks may include, but are not limited to; interest rate risk, counter party risk, liquidity risk and leverage risk. Potential investors should have a thorough understanding of these risks prior to making a decision to invest in these strategies.