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Commodities in a different package

Commodities, such as oil, gold, food or copper, can be one way to build a strong, diversified portfolio. However, investing in these materials has traditionally required a substantial amount of time, money and expertise.

Precious metals

Traditionally, there have been three ways to access commodities: 1.) You could purchase the physical commodity, like a bar of gold; 2.) You could purchase stock in a commodity-related company, such as an oil company; 3.) You could use futures contracts.

Instead of adding commodities to your portfolio, consider commodity ETFs.

Three ways to add commodity ETFs to your portfolio

  1. Gold or silver
    Gold and silver have historically provided safe havens during periods of global uncertainty. Rather than dealing with the hassle of buying and storing gold bars, you could invest in a gold ETF that is backed by physical gold and can be traded easily at any time during the day through your brokerage account.
  2. Commodity producers
    Consider investing in several commodity-related companies — mining, oil and energy, or agriculture — at once. iShares commodity-producer ETFs are specifically designed to be close to the front end of the production cycle, so they behave more like the underlying commodities themselves.
  3. A mix of commodity futures contracts
    iShares futures-based commodity funds gives you access to more than 20 different types of commodities, including agriculture, energy and metals, in a single trade. iShares CMDT also has the additional benefit of seeking to minimize the cost of rolling* each futures contract, which can add to performance over time.

 

*”Rolling” a futures contract means closing out a position in an expiring futures contract and establishing an equivalent position in a replacement futures contract on the same commodity.

Carefully consider the Funds' investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the Funds' prospectuses or, if available, the summary prospectuses, which may be obtained by visiting the iShares ETF and BlackRock Mutual Fund prospectus pages. Read the prospectus carefully before investing.

Investing involves risk, including possible loss of principal.

The iShares Gold Trust, iShares Silver Trust, iShares Dow Jones-UBS Roll Select Commodity Index Trust and iShares S&P GSCI Commodity Indexed Trust (together, the "Trusts”) are not standard ETFs. None of the Trusts is an investment company registered under the Investment Company Act of 1940. Shares of the Trusts are not subject to the same regulatory requirements as mutual funds or standard exchange traded funds. Investments in shares of the iShares S&P GSCI Commodity-Indexed Trust are speculative and involve a high degree of risk.

Before making an investment decision, you should carefully consider the risk factors, investment objectives, charges and expenses and other information included in the prospectus. To obtain a prospectus, go to iShares.com/prospectus or call 1-800-474-2737.

Diversification and asset allocation may not protect against market risk or loss of principal.

Commodities' prices may be highly volatile. Prices may be affected by various economic, financial, social and political factors, which may be unpredictable and may have a significant impact on the prices of commodities

The Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).

The iShares Funds are not sponsored, endorsed, issued, sold or promoted by Cohen & Steers Capital Management, Inc., European Public Real Estate Association (“EPRA®”), FTSE International Limited (“FTSE”), India Index Services & Products Limited, JPMorgan Chase & Co., MSCI Inc., Markit Indices Limited, Morningstar, Inc., The NASDAQ OMX Group, Inc., National Association of Real Estate Investment Trusts (“NAREIT”), New York Stock Exchange, Inc., Russell Investment Group or S&P Dow Jones Indices LLC, nor are they sponsored, endorsed or issued by Barclays Capital, Inc. None of these companies make any representation regarding the advisability of investing in the Funds.  BlackRock is not affiliated with the companies listed above. Index data related to the underlying indexes is provided by the respective companies above.

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