Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF

PDBC holds a diverse basket of commodity futures and aims to mitigate negative roll yield in its contract selection. The fund is structured as an ETF and is actively managed.

The industry's largest commodity ETF is celebrating its 10th birthday on Thursday, a significant milestone for the industry. The $4.6 billion Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF (PDBC) launched on November 7, 2014.

Industry's Largest Commodity ETF Celebrates 10th Birthday

PDBC offers a strong combination of low expense ratio, high dividend yield, and a strategic approach to the commodities market through its Optimum Yield strategy. The de-dollarization process, low interest in U.S. Treasuries, and rising long-term inflation expectations could work in favor of the commodities market. Heading into November, December's weak seasonality may pose a risk but also offer an opportunity to build a position, particularly for contrarian investors who prefer low-momentum assets.

PDBC: The Time For Commodities Has Come Back

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Even as gold prices are rising on expectations of a Fed rate cut, investors may be better positioned in diversified commodity ETFs. Broad-basket commodity ETFs can provide exposure to the asset class without placing significant bets on individual commodities.

2 Commodity ETFs to Help Diversify Portfolios

Commodity prices rose in Q2 2024, with base metals leading the way. Soft commodities led the asset class in the first half of 2024, while grains were the worst-performing sector. Geopolitical issues and market volatility could impact commodity prices in the second half of 2024.

PDBC: Commodities In Q2 2024 And Looking Forward To The Rest Of This Year

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While investors have been hyperfocused on bitcoin, they may have missed the rally in other commodities. Commodities including bitcoin, gold, and copper have reached record highs recently.

Is Now the Right Time to Add Exposure to Commodities?

PDBC is a diversified commodities ETF that invests in energy, precious metals, industrial metals, and agriculture commodities. The ETF uses a Cayman Islands subsidiary and provides transparency in its holdings, with a 50%/25%/25% allocation to energy, metals, and agriculture. PDBC has lagged behind the S&P 500 historically but can act as a diversifier in portfolios during periods of inflation, offering potential benefits in commodity exposure.

PDBC: Commodities Bore Me (Technical Analysis)

Cocoa prices have surged, surpassing the price of copper, while the broader commodity complex has been in rally mode. Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF has diversified commodity exposure and may benefit from an improved macro backdrop. PDBC has high exposure to energy commodities and low allocation in soft commodities like agriculture.

Commodities Are On A Roll, Playing The Upside Through PDBC

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The Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF is an actively managed ETF that invests in commodity-linked futures. PDBC offers a diversified approach to its portfolio, reducing overall volatility and standard deviation. The outlook for oil and gold in 2024 is strong, which should translate into a strong performance for PDBC.

PDBC: Time To Buy This Unloved Commodities Fund

Benchmark U.S. crude futures fell nearly 3% on Tuesday, with oil prices poised for their lowest close since August. As crude futures reach lows, investors may be tempted to overweight oil ETFs while prices are low, to position for a rebound.

Instead of Oil ETFs, Look to Broad-Basket Commodity PDBC

Many investors are rushing into gold or energy commodity ETFs to try to capture the current opportunity set — a strategy that's not guaranteed to pay off. In the current environment, characterized by uncertainty and unknown unknowns, diversification is key.

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Hi VettaFi Voices! Commodities have seen outflows year to date overall, and some of the best performers have seen outflows.

VettaFi Voices On: Considering Commodities

Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF is an exchange-traded fund that offers investors exposure to the world's most heavily traded commodities. The PDBC ETF offers exposure to 14 commodities, adjusting its weighting as per the prevailing market conditions. PDBC does not issue a K-1 tax form, a feature that is likely to appeal to investors wary of the tax complications associated with commodity ETFs.

PDBC: A Solid Broad Commodity Play

A commodity ETF can serve an important role in well-diversified portfolios. As inflation shows signs of reaccelerating and energy prices surge, many investors are allocating to the Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF (PDBC).

Investors Look to PDBC for Commodity ETF Exposure

The threat of a recession looming over the U.S. economy may have turned investors away from commodities. However, the tide could be turning in their favor based on trader activity in exchange traded funds (ETFs).

As Investors Pile Into Commodities, Consider a Diversified ETF

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Given the current global and national economic environment, investors and advisors remain keen on finding new asset classes to put funds into. The main topics and asset classes investors continue to engage with are U.S. fixed income, U.S. equities, and international equities.

Interest in Commodity ETFs Continues to Drop

The US Dollar Index fell below the crucial 100 level on Thursday, with some economists predicting softer US real GDP growth in late 2023 and a potential recession in 2024. Despite a falling dollar and positive economic outlook, commodity prices remain unstable, with the Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF (PDBC) expected to continue fluctuating. The PDBC, which has high exposure to energy-related commodities, has not shown signs of a new bull market, despite US oil prices recently rising above $75.

PDBC: DXY Breaks 100, No Big Benefit For Dollar-Denominated Commodities Yet

Investors who already have allocation to gold in their portfolios are planning to increase their allocations to the metal through 2023, according to a survey released recently by State Street Global Advisors. The study includes more than 1,000 investors with at least $250,000 in investable assets.

Survey: Gold Investors Planning More Allocation

PDBC is the largest and highest-traded commodity ETF and a popular choice among investors. Though its returns are superior to those of its closest competitors, if an investor has room for just one commodity fund in their portfolio, there are better options.

PDBC: Buy/Hold Investors Have Better Options Available

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Invesco has planned ETF closures as the firm polishes its product lineup. According to recent regulatory filings, around 20 ETFs will be impacted by the firm's product refinement.

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The Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF (PDBC) is standing out from its commodities ETFs peers as it continues to accrete strong inflows. PDBC has garnered $232 million in net flows year to date.

Assets Continue to Flow Into Active Commodity ETF PDBC

Metal prices fall from highs, but the trends remain positive. Energy is a mixed picture going into 2022's final month, presenting an opportunity.

PDBC: The Case For Commodities In December And Beyond

Commodities have not caught a bid even with a weakening U.S. dollar. As fears turn from inflation to recession, commodities could come under further pressure.

News for Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF ETF (PDBC)