L&G Multi‑Strategy Enhanced Commodities

ETF description

This ETF aims to provide investors with exposure to a broad range of commodities by using a multi‑strategy approach. Commodities include natural resources like metals, energy products, and agricultural goods. Instead of focusing on just one sector or commodity, this ETF spreads its investments across different types of commodities, which can help balance the risks of price swings in any one area.

The fund employs an enhanced strategy that seeks to improve returns over time by actively managing its positions in the commodities market. This involves using futures contracts, which are agreements to buy or sell a commodity at a set price in the future, as well as other techniques to capture potential gains from market movements. The strategy also aims to reduce the effects of short‑term volatility, offering a more stable performance over the long term.

This ETF could appeal to investors who want to diversify their portfolios by adding commodities, which tend to behave differently from traditional assets like 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 Multi‑Strategy Enhanced Commodities index provides investors with diversified exposure to the commodities market, employing multiple investment strategies to enhance returns and manage risks. The index captures the performance of various commodity futures contracts, offering a valuable tool for investors seeking a comprehensive and enhanced approach to commodity investing.