Summary:
- Commodities are key alternative investments that may offer diversification benefits for portfolio allocations through low correlations to other asset classes and its own sub-sectors.
- Historically moving in tandem with rising growth and inflation surprises, commodities may serve as a component of inflation hedging strategies for diversified portfolios.
- Investors may improve their portfolios by including broad commodities allocations; however, implementation choices of this exposure are central to the investment experience.