Should I invest in commodities?

Should I invest in commodities?

Investing in commodities has lately become accessible to even small retail investors via ETFs.

There are now literally hundreds of different commodity ETFs, linked to various individual commodities and baskets (such as agricultural baskets, commodity indices, etc.) These instruments are very complex and sometimes do not reflect the behavior of the underlying commodity.

While investing in commodities may significantly diversify your portfolio, it requires profound knowledge of the behavior of the underlying assets.

You might think about allocating a small portion of your portfolio (say, 10-15%) to commodities, but we would strongly advise you to be very careful with these types of investments and consult an expert.

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