Commodities (US Tax)

by
Leo Wealth
A diversified allocation to commodities, to provide an inflation benefit and to diversify from traditional stock and bond exposures.

Strategy Description

Exposure to commodities allows investors to take advantage of 4 key global trends:

  • Sustainability the move to carbon neutrality requires more copper, iron ore, silver, nickel, cobalt, aluminum, etc. This is positive for industrial metals and provides a long-term tailwind
  • Infrastructure the US needs to upgrade infrastructure and China has not developed many parts of the interior. Commodities are required for both countries’ growth / infrastructure plans.
  • Supply producers have carefully managed capex to improve bottom lines and ESG scores, as well as to prepare for a fossil-free world. This limited supply cannot be resolved overnight.
  • Inflation & USD weakness since commodities are finite and priced in USD, their inclusion in portfolios can improve returns in a world of monetary supply expansion and potential inflation.

This strategy invests across the commodity spectrum – precious and industrial metals, agriculture commodities and energy markets. Can be run with or without cryptocurrency exposure, which adds another dimension of diversification and exposure to a potential new asset class.

Daily transparency and liquidity; implementation is via low-cost ETFs to minimize costs

For international investors, available in a non-U.S. version.

Portfolio Performance

202120222023YTD
Portfolio (%)7.94-7.2911.1120.6
Annualized ReturnStandard DeviationDividend Yield
Portfolio12.13%18.97%0%

Allocation Breakdown

Asset Class


Equity0
Fixed Income0
Commodities99.57%
Cash0.43%

Geo


North America78.83%
Greater Europe13.72%
Other7.45%

Sector


Gold14.9%
Silver11.7%
Industrial Metals20.25%
Bitcoin8.06%
Ethereum8.28%
Broad Commodities27.61%
Energy8.77%

Top Holdings

Asset ClassWeight (%)
1. Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF27.61%
2. abrdn Bloomberg Industrial Metals Strategy K-1 Free ETF20.25%
3. SPDR Gold MiniShares Trust14.90%
4. abrdn Physical Silver Shares ETF11.70%
5. Invesco DB Energy Fund8.77%
6. Grayscale Ethereum Trust8.28%
7. Fidelity Wise Origin Bitcoin Fund8.06%

Related Investments

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We offer a personal, calculated plan for your finances. Get in touch to learn how we can help support your family’s future and build a richer life.

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