Commodities Trade Still Has Gas in Its Tank

That task is made easier thanks to ETFs such as the actively managed ALPS CoreCommodity Natural Resources ETF (CCNR). “Renewed tensions in the Middle East strengthen the case for broad commodity exposure as both a source of return and an inflation hedge,” according to UBS. Should a lasting peace deal finally be reached, oil prices would likely decline, weighing on energy stocks in the process. Another potential catalyst for CCNR, namely the ETF’s materials sleeve, would be renewed enthusiasm for the artificial intelligence (AI) trade. We like broad commodity exposure, with an active approach amid still elevated volatility,” noted UBS.