Investment
Commodity Funds
Also known as: Commodity ETFs, Natural Resources Funds
Mutual funds that invest in commodity-related securities or commodity derivatives for inflation hedging.
Detailed Explanation
Commodity Funds invest in commodity-related securities, commodity derivatives, or companies involved in commodity production. They provide exposure to precious metals, energy, agriculture, and industrial metals. These funds serve as inflation hedges and portfolio diversifiers, often performing well during inflationary periods when traditional assets struggle. They carry higher volatility and regulatory risks.