Commodities are now mainstream: Survey

Commodities are now mainstream: Survey
With a a third of broker reps and indie advisers allocating to precious metals, commodities are now mainstream
FEB 27, 2012
Commodities have graduated to the mainstream of investment asset classes, according to a recent survey of brokerage representatives and independent advisers. A survey conducted last month during the ETF Virtual Summit found that 85% of financial intermediaries are now allocating client portfolios to commodities. “It was a bit of a surprise because I was expecting the number [of advisers using commodities] to be lower,” said William Rind, managing director at ETF Securities USA LLC, which conducted the online survey during the summit. Among the findings, Mr. Rind said he learned that brokerage reps expressed a stronger interest in learning more about commodities and commodities investing. “There are not a lot of brokerage companies out there educating reps on commodities,” he said. “And the RIAs are doing their own research on commodities.” In terms of specific investing, the survey found that 33% of independent advisers and 35% of brokerage reps are using precious metals as part of an asset allocation strategy, while 21% of independent advisers and 20% of brokerage reps use precious metals for tactical investing. “This survey confirms that most advisers are using commodities and precious metals in diversified portfolios, and indeed, these once alternative investments have cemented themselves as a mainstream asset class,” said Tom Lydon, organizer of the virtual conference and president of Global Trends Investments. The survey of 220 financial intermediaries included 124 brokerage reps and 96 independent advisers.

Latest News

Advisor says retirement plan defaults still target an average
Advisor says retirement plan defaults still target an average

ERISA Investment Fiduciary Philip Chao says most retirement plans use target date funds as a one-size-fits-all default that ignores individual circumstances

Ex-broker in Florida gets more than six years for stealing $2 million from senior
Ex-broker in Florida gets more than six years for stealing $2 million from senior

Eric J. Stone was fired by Fidelity in 2021 after facing claims he took loans from clients.

Vistria takes majority stake in Curi Capital in fresh RIA deal
Vistria takes majority stake in Curi Capital in fresh RIA deal

Chicago-based Curi Capital gets new majority owner as $14 billion RIA eyes acquisitions and expanded family office services

WealthReach, VastAdvisor tie-up takes aim at advisors' cold outreach problem
WealthReach, VastAdvisor tie-up takes aim at advisors' cold outreach problem

Partnership pairs organic lead detection with paid ad targeting to help end "spray-and-pray" marketing for growth-seeking advisory firms.

LPL taps Wells Fargo vet as new chief technology and information officer
LPL taps Wells Fargo vet as new chief technology and information officer

Jonathan Lewis joins the wealth management giant as it proceeds with a $2 billion AI and technology push for advisors.

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income