NBCM Profile
The Neuberger Berman Commodity Strategy ETF is designed to provide investors with exposure to a diversified range of commodity-linked assets through an actively managed investment approach. The fund primarily invests in commodity-linked derivative instruments, such as futures and swaps, which are tied to the performance of various commodities including oil, natural gas, agricultural products, and metals. By utilizing these derivatives, the fund aims to capture the performance of commodities and potentially benefit from price movements in these underlying assets.
In addition to commodity-linked derivatives, the fund allocates a significant portion of its assets to fixed income instruments. These investments are primarily in high-quality, investment-grade fixed income securities. The fixed income component is intended to serve multiple purposes: to provide liquidity, preserve capital, and act as collateral for the fund's commodity-linked derivatives. This dual investment strategy helps manage risk while maintaining a balance between the potential returns from commodities and the stability offered by fixed income securities.
The fund's approach is designed to offer diversified exposure to commodity markets while mitigating some of the inherent volatility associated with investing directly in physical commodities. By combining derivatives with a stable fixed income allocation, the Neuberger Berman Commodity Strategy ETF seeks to provide investors with a hedge against inflation and an opportunity to participate in the performance of commodity markets. This balanced strategy aims to enhance portfolio diversification and provide potential benefits from commodity price movements.
Overall, the Neuberger Berman Commodity Strategy ETF offers a sophisticated investment vehicle for those looking to gain exposure to the commodity sector through a blend of derivative instruments and high-quality fixed income securities. The fund's strategy is tailored to deliver both potential returns from commodities and stability from fixed income investments, making it an attractive option for investors seeking to diversify their portfolios with exposure to global commodity markets.
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