Mastering Volatile Commodity ETFs: Navigating the ’Roll Yield’ Trap
Commodity markets, from energy to precious metals, are experiencing amplified volatility due to geopolitical risks, monetary policy shifts, and supply chain disruptions. This 'new normal' presents both opportunity and risk for investors seeking diversification and inflation hedges.
Exchange-Traded Products (ETPs) offer retail investors exposure without physical logistics, but futures-based structures introduce hidden risks like roll yield erosion. Sophisticated strategies are required to navigate these complexities in today's turbulent markets.