L&G Longer Dated All Commodities

ETF description

This ETF aims to give investors exposure to a wide range of commodities by tracking the performance of a basket of different raw materials. Commodities are physical goods such as metals, energy resources, and agricultural products. By investing in a diversified mix of these assets, the ETF seeks to capture potential price movements in the broader commodities market.

The fund focuses on ‘“longer‑dated”’ contracts, meaning it invests in futures contracts that are set to expire further in the future. These types of contracts can reduce the impact of short‑term price fluctuations and may provide more stability compared to shorter‑dated ones. Investors in this ETF gain access to various commodities without needing to trade or store the physical assets themselves.

This ETF may be of interest to investors who want to diversify their portfolio by adding exposure to commodities, which can behave differently from stocks or bonds.

Issuer details

Legal & General Investment Management (LGIM) is one of Europe’s largest asset managers and a subsidiary of Legal & General Group plc. With over £1.5 trillion in assets under management as of June 2024. Established in 1836, LGIM has a long history and is known for its strong focus on index investing, providing investors with cost‑effective and diversified exposure to various markets. LGIM is also recognized for its innovative ESG integration across its investment strategies and expertise in liability‑driven investment (LDI) solutions. Notable ETFs include the L&G Global Technology Leaders UCITS ETF and the L&G Cyber Security UCITS ETF, reflecting LGIM’s commitment to providing access to innovative and thematic investment themes. LGIM offers a range of investment solutions and covers various market segments.

Index details

The Longer Dated All Commodities index offers investors a strategic approach to gaining exposure to the commodities market while mitigating some of the risks associated with short‑term futures contracts. By focusing on longer maturities, the index aims to provide more stable returns and reduce the impact of contango and roll yield. The index captures the performance of a broad range of commodities, providing a valuable tool for portfolio diversification and inflation protection.