2022 Commodities Outlook – The ghosts of commodities past, present and future
Thursday, December 16, 2021
2:00 PM EST | 11:00 AM PST
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Join us for an interactive discussion with our friends from abrdn (formerly Aberdeen Standard Investments) about the diversification potential of commodities. On Thursday, December 16th at 2pm, we’ll discuss how commodities have performed this year and our outlook for 2022 and beyond. From broad commodities, to industrial and precious metals, we’ll take a deep dive into what market factors have impacted performance. We’ll also highlight how an allocation to commodities can help dampen overall portfolio volatility while helping to position investors for the coming green energy transition.
In this webcast, Robert Minter, CFA, CMT, CAIA Director of ETF Investment Strategy, and Stan Kiang, CIMA®, Director of Strategic Accounts, will discuss current events looming large over this corner of the financial markets and lay out the fundamentals underlying the potential need for a longer-term, strategic allocation. This webcast is eligible for Continuing Education (CE) credit.
This webcast provides key insights and actionable strategies for diversifying with commodities. Some of the topics that will be addressed include:
- The potential benefits of investing in commodities
- How high fees can derail the goals of commodities investors
- The differences between various commodities sub-sectors
This presentation is approved for Investment Professionals Only.
This presentation is approved by ALPS.
An investor should consider the investment objectives, risks, charges and expenses of the ETFs carefully before investing. To obtain a prospectus containing this and other important information, call 844-ETFS-BUY (844-383-7289) or visit www.abrdn.com/usa/etf. Read the prospectus carefully before investing.
Fund Risk: There are risks associated with investing including possible loss of principal. Commodities generally are volatile and are not suitable for all investors. There can be no assurance that the Fund’s investment objective will be met at any time. The commodities markets and the prices of various commodities may fluctuate widely based on a variety of factors. Because the Fund's performance is linked to the performance of highly volatile commodities, investors should consider purchasing shares of the Fund only as part of an overall diversified portfolio and should be willing to assume the risks of potentially significant fluctuations in the value of the Fund.
The Fund uses a “passive” or representative sampling indexing approach to attempt to achieve its investment objective. The Fund does not try to outperform the Index and does not generally take temporary defensive positions. The Fund will invest in only a representative sample of the instruments in the Index, and the Fund may invest in or gain exposure to instruments not contained in the Index or in financial instruments, with the intent of tracking the Index.
Through holding of futures, options and options on futures contracts, the Fund may be exposed to (i) losses from margin deposits in the case of bankruptcy of the relevant broker, and (ii) a risk that the relevant position cannot be close out when required at its fundamental value. In pursuing its investment strategy, particularly when rolling futures contracts, the Fund may engage in frequent trading of its portfolio of securities, resulting in a high portfolio turnover rate.
As a “non-diversified” fund, the Fund may hold a smaller number of portfolio securities than many other funds. To the extent the Fund invests in a relatively small number of issuers, a decline in the market value of a particular security held by the Fund may affect its value more than if it invested in a larger number of issuers. The value of Shares may be more volatile than the values of shares of more diversified funds.
During situations where the cost of any futures contracts for delivery on dates further in the future is higher than those for delivery closer in time, the value of the Fund holding such contracts will decrease over time unless the spot price of that contract increases by the same rate as the rate of the variation in the price of the futures contract. The rate of variation could be quite significant and last for an indeterminate period of time, reducing the value of the Fund.
Changes in the laws of the United States and/or the Cayman Islands, under which the Fund and the Subsidiary are organized, respectively, could result in the inability of the Subsidiary to operate as intended and could negatively affect the Fund and its shareholders.
To the extent the Fund is exposed directly or indirectly to leverage (through investments in commodities futures contracts) the value of that Fund may be more volatile than if no leverage were present.
In order to qualify for the favorable U.S. federal income tax treatment accorded to a regulated investment company (“RIC”), the Fund must derive at least 90% of its gross income in each taxable year from certain categories of income (“qualifying income”) and must satisfy certain asset diversification requirements. Certain of the Fund’s investments will not generate income that is qualifying income. The Fund intends to hold such commodity-related investments indirectly, through the Subsidiary. The Fund believes that income from the Subsidiary will be qualifying income because it expects that the Subsidiary will make annual distributions of its earnings and profits. However, there can be no certainty in this regard, as the Fund has not sought or received an opinion of counsel confirming that the Subsidiary’s operations and resulting distributions would produce qualifying income for the Fund. If the Fund were to fail to meet the qualifying income test or asset diversification requirements and fail to qualify as a RIC, it would be taxed in the same manner as an ordinary corporation, and distributions to its shareholders would not be deductible by the Fund in computing its taxable income.
Diversification does not eliminate the risk of experiencing investment losses. Transparency refers to investor access to financial information such as price, market position and audited financial reports.
Investing involves risk, including the loss of principle. Brokerage commissions may apply and would reduce returns.
Investors buy and sell shares on a secondary market (i.e., not directly from trust). Only market makers or "authorized participants" may trade directly with the fund, typically in blocks of 25k to 100k shares.
Please see the current prospectus at www.abrdn.com/usa/etf for more information regarding the risk associated with an investment in the Funds.
Stan Kiang is a registered representative of ALPS Distributors, Inc.
ALPS Distributors, Inc. is the distributor for the abrdn ETFs. ALPS is not affiliated with abrdn.
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Stan Kiang, CIMA®
Director of Strategic Accounts
Stan Kiang, CIMA®, is Director of Strategic Accounts for abrdn. Stan is focused on maintaining and expanding partnership opportunities with National Account platforms and asset managers. Stan was previously a member of ETF Securities US (ETFS) and joined abrdn (then ASI) following its acquisition of ETFS in 2018. Prior to joining ETFS in 2015, Stan spent nearly thirteen years at BlackRock in a variety of functions spanning corporate development and strategy, portfolio management and sales. As a portfolio manager, Stan was a member of BlackRock’s Institutional Index Equity team focused on managing commodity futures and emerging market equity based products. As a member of the iShares Institutional Sales team, Stan was tasked with managing relationships with RIAs, asset managers and ETF Strategists for the firm. Prior to joining BlackRock, Stan spent everal years in equity research at JP Morgan Securities, serving in a consulting role at FactSet Research Systems, as well as Investment Banking at Bank of America Securities. Stan holds a BA in Economics from St. Mary’s College and holds the series 7, 30 and 63 FINRA registrations. Stan Kiang is a registered representative of ALPS Distributors, Inc.
Robert Minter, CFA, CMT, CAIA
Director of ETF Investment Strategy
Robert Minter, CFA, CMT, CAIA, is the Director of ETF Investment Strategy for abrdn. He also manages two multi-asset mutual funds. He has written articles on commodities and has been quoted in the press and external publications. Robert joined abrdn (then Aberdeen Asset Mangement) in 2006. Prior to that, he worked at Vanguard, Fidelity and then Emerald Capital Group, where he assisted managing fixed-income portfolios and monetized workout securities for insurance company portfolios. A member of the CFA Institute, CMT Association and the CAIA Association, Robert earned his B.A. in Economics from Rutgers University.
CEO and Founder
Robert Huebscher is the founder and CEO of Advisor Perspectives and serves as its editor-in-chief. He is a frequent speaker at industry conferences and has written extensively on topics including investment management, portfolio construction, financial planning and global economics.