COMMODITIES INVESTING WITH iSHARES

Commodities are raw materials that are either consumed directly or used as building blocks to create other products. Investing in commodities can offer several advantages, including serving as a hedge against inflation and diversification. Commodity prices often show lower correlation to stocks and bonds as prices may be influenced by factors like weather. Commodities can also serve as a hedge against inflation.

Unlike stocks or bonds, commodities represent actual physical goods like gold, oil, or agricultural products, offering direct exposure to the material’s price movements.

Investors can gain exposure to physical precious metals (e.g. gold and silver), commodity futures (e.g. energy and agricultural commodities), and the stocks of companies that produce commodities across our broad array of commodity ETPs.

Investing in commodities and commodities exchange traded products carries a high degree of risk, and you could lose all or a substantial portion of your investment. These investments are subject to fluctuations affecting (or similar to those affecting) individual commodity prices, and are influenced by unpredictable factors such as weather, geopolitical turmoil, and economic developments. Additionally, any international investing, including in commodities-related equities or fixed income exposures, involves risks related to foreign currency, limited liquidity, less government regulation, and the possibility of substantial volatility due to adverse political, economic or other developments.

Commodity ETPs (exchange-traded products) are investment vehicles that trade on an exchange and offer investors exposure to a range of commodities. They hold physical commodities, commodities futures or the stocks of commodities producers. These ETPs provide a low-cost and easy way for investors to gain exposure to commodities, which may potentially hedge against inflation and serve as strategic tool for portfolio diversification.

Commodity prices are driven by a complex interplay of factors, including but not limited to supply and demand dynamics, geopolitical events, and varying economic conditions. Market volatility can arise from various factors such as changes in weather patterns which may impact the price of agricultural commodities or shifts in energy production which could impact the price of energy commodities. For investors in commodity ETPs, understanding these factors is key to navigating the potential for both growth and risk within the commodities market.