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Looking for Broad Commodity Exposure in a Single ETF? Meet NBCM
This ETF from Neuberger Berman offers diversified, actively managed exposure to a broad range of commodities.
Commodities, often seen as a tangible asset class, can offer diversification benefits and potential protection against inflation. However, investing directly in a single commodity, whether through physical ownership or futures contracts, can be complex and involves significant risks, including price volatility, supply chain disruptions, geopolitical events, and the challenges of storing and transporting physical goods.
Commodity ETFs like the Neuberger Berman Commodity Strategy ETF (NBCM) simplify this process by providing easy access to a diversified basket of commodities, making them a more accessible and attractive investment option for many.
Here's what you need to know about NBCM:
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How NBCM ETF Works
The Neuberger Berman Commodity Strategy ETF (NBCM) provides broad exposure to a range of commodities through investments in commodity-linked derivatives and fixed income securities.
Originally launched as a mutual fund in 2012, it converted to an ETF in 2022.
NBCM invests in futures, swaps, and other derivatives tied to commodity indices and individual commodities, while also holding short-term fixed income securities like U.S. government bonds.
Its active management allows for flexible adjustments based on market conditions, aiming to capture commodity performance while managing volatility and risk.
As of September 18th, 2024, the fund’s top 10 commodity exposure are:
- Gold – 16.55%
- Brent Crude – 7.62%
- WTI Crude – 7.17%
- Copper – 6.95%
- Natural Gas – 5.24%
- Live Cattle – 4.70%
- Soybeans – 4.6%
- Coffee – 4.38%
- Silver – 4.05%
- Gasoil – 3.89%
Of course, holdings are subject to change. NBOS trades on the NYSE and has a net expense ratio of 0.66%.
Why You Should Consider NBCM ETF
NBCM presents an attractive opportunity for investors seeking to diversify their portfolios and potentially hedge against inflation.
By investing in a diversified mix of commodities, including energy, agriculture, and metals, the fund offers exposure to a unique asset class that often exhibits low correlation to traditional stocks and bonds.
Actively managed by a seasoned team, the ETF dynamically adjusts its investments to capitalize on market trends while mitigating risks. This flexibility allows NBCM to potentially provide both return enhancement and downside protection.
About Neuberger Berman
Neuberger Berman is a private, independent, employee-owned investment management firm founded in 1939. With a focus on delivering long-term performance, the firm offers a broad range of investment strategies, including equity, fixed income, and alternatives. Neuberger Berman's active ETF suite leverages the firm's deep expertise and research-driven approach to provide investors with dynamic, actively managed investment solutions. These ETFs aim to capture alpha through tactical asset allocation and rigorous security selection, catering to a variety of investment goals and risk profiles with a goal to provide access to Neuberger Berman's institutional quality investments in an investor-friendly wrapper.
Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.
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