This is an active ETF that invests across multiple commodity futures, including energy, metals, and agriculture. It allocates to a variety of commodity futures and manages contract rollovers, giving investors exposure to commodity price trends and an inflation hedge.

It suits investors who want broad commodity diversification, are seeking an inflation hedge and portfolio diversification, and are willing to tolerate commodity volatility.

It is an ETF run by Neuberger Berman using an active management approach.

The fund invests across multiple commodity futures, including energy, metals, and agriculture, and manages the futures rollover process in an effort to reduce rollover costs. By spreading assets across several commodities rather than a single one, it gains exposure to commodity price cycles and inflation trends, and it aims to provide diversification benefits that differ from stocks and bonds.

• Diversified across multiple commodity futures
• Active management of rollovers

Assets under management (AUM) stand at $581.3M, and the total expense ratio (Expense Ratio) is 0.65% per year.

Compared with the passive commodity ETFs PDBC and BCI, the main points of comparison are its active allocation and rollover management approach.

Commodities are driven by the global economy, supply and demand, geopolitical variables, and the strength of the dollar. They tend to be strong when inflation is rising and weak when the economy is slowing. When the futures curve is in contango, costs can arise during the rollover process.

Fund flows into commodity products diverge depending on the inflation outlook, the economic phase, and the supply environment, and money sometimes moves into related products when demand for inflation hedges grows. It is also worth noting that performance can vary widely depending on the commodity cycle and the futures curve.

Its strengths are commodity diversification and an inflation hedge, while commodity volatility, rollover costs, and its lack of dividends are factors to consider.

For passive exposure to diversified commodities, direct substitutes include DBC and GSG, and for a broad commodity strategy, products such as COMT are also worth comparing. The three products shown in the table, PDBC, BCI, and CMDT, all invest in diversified commodities but differ in passive versus active management approaches. What sets this ETF apart is that it allocates actively across multiple commodity futures and manages rollovers.

Here are the points to review before investing in NBCM. Commodity diversification and an inflation hedge are attractive, but commodity volatility, rollover costs, and the lack of dividends need to be checked in advance. It is also a good idea to compare it with passive commodity products.

Sharp commodity price swings, an economic slowdown, and rollover costs from a contango futures curve are the main variables for short-term performance, and commodities are highly volatile depending on supply and demand and geopolitical variables. Losses can occur when the commodity cycle slows.

It is a suitable candidate for investors who want broad commodity diversification while seeking an inflation hedge. Investors who want passive diversified commodity exposure may look at products such as DBC and GSG, while those who want active commodity allocation and rollover management should compare this product alongside them before choosing.