Commodities lower and spread the risk in an investment portfolio since they are not driven by the same forces as equities and interest rates. Over the long term, commodities and equities tend to move independently of one another. In recent years, however, short-term fluctuations in the commodities market and equities have followed each other quite closely.
Xact Commodity allows you to complement your portfolio with a broad commodity ETF. The fund enables you to invest in a basket comprising of 15 different commodities, with exposure directly to the price of the commodities included in the index, rather than stock market prices for the companies that supply the commodities.