Overview: |
| Title: Back to the main event, and the potential opportunities for commodities |
| Date: Thursday, June 29, 2023 |
| Time: 1:00 PM Eastern Daylight Time |
| Duration: 1 hour |
Register Now: |
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Summary: |
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Now On Demand |
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Speakers: |
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Robert Minter is the Director of Investment Strategy on the ETF Team at abrdn. His responsibilities include setting commodity and ETF strategy. He was previously Portfolio Manager of three US multi asset mutual funds at abrdn. Robert joined the company in 2007. Previously, he was employed by Emerald Capital Group, Ltd for eleven years as an analyst and had portfolio management responsibilities. The company specialized in insurance company asset management and workout securities. Prior to Emerald, Robert worked at Fidelity Investments and The Vanguard Group. Robert graduated with a BA in Economics from Rutgers University. Robert is a CFA charter holder. He holds the Chartered Alternative Investment Analyst (CAIA) designation from CAIA Association and the Chartered Market Technician (CMT) designation from the Market Technicians Association. He is currently member of the New York Society of Security Analysts (NYSSA), CFA society of Philadelphia, CMT Association and CAIA Association. |
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Dan Magnusson is the firm’s ETF specialist working with all clients across national accounts, platform, institutional and retail segments. Dan also works on the branding, marketing and overall support of the firm’s ETF related content, research and initiatives. Before moving into the ETF role, Dan was a regional specialist with abrdn in offering high-level coverage for clients in the Western US. Prior to that, Dan held roles as a regional wholesaler for Guggenheim Investments and began his career in Chicago as a Financial Advisor. Dan has over 20 years of product experience and has acquired industry registrations such as the Series 7, 3, 63 & 65. |
Important Disclosures
’33 Act Disclosure
PAST PERFORMANCE IS NOT AN INDICATION OF FUTURE RESULTS. The statements and opinions expressed are those of the author and are as of the date of this report. All information is historical and not indicative of future results and subject to change. The reader should not assume that an investment in any securities and/or precious metal mentioned was or would be profitable in the future. This information is not a recommendation to buy or sell. Past performance does not guarantee future results.
The abrdn Gold ETF Trust is not an investment company registered under the Investment Company Act of 1940 or a commodity pool for purposes of the Commodity Exchange Act. Shares of the Trust are not subject to the same regulatory requirements as mutual funds. Commodities generally are volatile and are not suitable for all investors. Trusts focusing on a single commodity generally experience greater volatility. Please refer to the prospectus for complete information regarding all risks associated with the Trust. Shares in the Trust are not FDIC insured and may lose value and have no bank guarantee.
The value of the shares relates directly to the value of the precious metal held by the Trust and fluctuations in the price could materially adversely affect investment in the shares. Several factors may affect the price of precious metal, including:
A change in economic conditions, such as a recession, can adversely affect the price of the precious metal held by the Trust. Some metals are used in a wide range of industrial applications, and an economic downturn could have a negative impact on its demand and, consequently, its price and the price of the shares;
Investors’ expectations with respect to the rate of inflation;
Currency exchange rates;
Interest rates;
Investment and trading activities of hedge funds and commodity funds; and Global or regional political, economic or financial events and situations. Should there be an increase in the level of hedge activity of the precious metal held by the Trust or producing companies, it could cause a decline in world precious metal prices, adversely affecting the price of the shares.
Also, should the speculative community take a negative view towards the precious metal held by the Trust, it could cause a decline in prices, negatively impacting the price of the shares. There is a risk that part or all of the Trust’s physical metal could be lost, damaged or stolen. Failure by the custodian or sub-custodian to exercise due care in the safekeeping of the metal held by the Trust could result in a loss to the Trust. The Trust will not insure its metal and shareholders cannot be assured that the custodian will maintain adequate insurance or any insurance with respect to the metal held by the custodian on behalf of the Trust. Consequently, a loss may be suffered with respect to the Trust’s metal that is not covered by insurance.
Investors buy and sell shares on a secondary market (i.e., not directly from Trust). Only market makers or “authorized participants” may trade directly with the Trust, typically in blocks of 50k to 100k shares.
Diversification does not eliminate the risk of experiencing investment losses.
Trading in commodities entails a substantial risk of loss and is not suitable for all investors.
Commodities generally are volatile and are not suitable for all investors. Carefully consider the Fund’s investment objectives, risk factors, and fees and expenses before investing. This material must be accompanied or preceded by prospectus. Please see the prospectus for abrdn Physical Gold Shares ETF.
abrdn Physical Gold Shares ETF (SGOL) – Factsheet , Prospectus
Please read the prospectus carefully before investing.
ALPS Distributors, Inc. is the marketing agent.
ALPS is not affiliated with abrdn.
’40 Act Disclosure
An investor should consider the investment objectives, risks, charges and expenses of the ETFs carefully before investing. To obtain a prospectus containing this and other important information, call 844-ETFS-BUY (844-383-7289) or visit www.abrdn.com/us/etf. Read the prospectus carefully before investing.
Diversification does not eliminate the risk of experiencing investment losses. Liquidity describes the degree to which an asset can be quickly bought or sold in the market at a price reflecting its intrinsic value. Brokerage commission may apply and would reduce returns.
Fund Risk: There are risks associated with investing including possible Joss of principal. Commodities generally are volatile and are not suitable for all investors. There can be no assurance that the Fund’s investment objective will be met at any time. The commodities markets and the prices of various commodities may fluctuate widely based on a variety of factors. Because the Fund’s performance is linked to the performance of highly volatile commodities, investors should consider purchasing shares of the Fund only as part of an overall diversified portfolio and should be willing to assume the risks of potentially significant fluctuations in the value of the Fund.
Through holding of futures, options and options on futures contracts, the Fund may be exposed to (i) losses from margin deposits in the case of bankruptcy of the relevant broker, and (ii) a risk that the relevant position cannot be close out when required at its fundamental value. In pursuing its investment strategy, particularly when rolling futures contracts, the Fund may engage in frequent trading of its portfolio of securities, resulting in a high portfolio turnover rate.
As a “non-diversified” fund, the Fund may hold a smaller number of portfolio securities than many other funds. To the extent the Fund invests in a relatively small number of issuers, a decline in the market value of a particular security held by the Fund may affect its value more than if it invested in a larger number of issuers. The value of Shares may be more volatile than the values of shares of more diversified funds.
During situations where the cost of any futures contracts for delivery on dates further in the future is higher than those for delivery closer in time, the value of the Fund holding such contracts will decrease over time unless the spot price of that contract increases by the same rate as the rate of the variation in the price of the futures contract. The rate of variation could be quite significant and last for an indeterminate period of time, reducing the value of the Fund.
Changes in the laws of the United States and/or the Cayman Islands, under which the Fund and the Subsidiary are organized, respectively, could result in the inability of the Subsidiary to operate as intended and could negatively affect the Fund and its shareholders.
To the extent the Fund is exposed directly or indirectly to leverage {through investments in commodities futures contracts) the value of that Fund may be more volatile than if no leverage were present.
In order to qualify for the favorable U.S. federal income tax treatment accorded to a regulated investment company (“RIC”), the Fund must derive at least 90% of its gross income in each taxable year from certain categories of income (“qualifying income’) and must satisfy certain asset diversification requirements. Certain of the Fund’s investments will not generate income that is qualifying income. The Fund intends to hold such commodity-related investments indirectly, through the Subsidiary. The Fund believes that income from the Subsidiary will be qualifying income because it expects that the Subsidiary will make annual distributions of its earnings and profits. However, there can be no certainty in this regard, as the Fund has not sought or received an opinion of counsel confirming that the Subsidiary’s operations and resulting distributions would produce qualifying income for the Fund. If the Fund were to fail to meet the qualifying income test or asset diversification requirements and fail to qualify as a RIC, it would be taxed in the same manner as an ordinary corporation, and distributions to its shareholders would not be deductible by the Fund in computing its taxable income.
Investors buy and sell shares on a secondary market (i.e., not directly from trust). Only market makers or “authorized participants” may trade directly with the fund, typically in blocks of 25k to 100k shares.
“Bloomberg®”, “Bloomberg Commodity IndexSM,” “Bloomberg Commodity Index 3Month ForwardSM” and “Bloomberg Industrial Metals Subindex Total ReturnSM” are service marks of Bloomberg Finance L.P. and its affiliates, including Bloomberg IndexServices Limited (“BISL”), the administrator of the indices (collectively, “Bloomberg”) and have been licensed for use for certain purposes by abrdn ETFs Advisors LLC. Bloomberg is not affiliated with abrdn ETFs Advisors LLC, and Bloomberg does not approve, endorse, review, or recommend abrdn Bloomberg All Commodity Strategy K-1 Free ETF (BCI), abrdn Bloomberg All Commodity Longer Dated Strategy K-1 FreeETF (BCD), and abrdn Bloomberg Industrial Metals K-1 Free ETF (BCIM). Bloomberg does not guarantee the timeliness, accurateness, or completeness of any data or information relating to Bloomberg Commodity IndexSM. Please see the current prospectus at www. abrdn.com/us/etf for more information regarding the risk associated with an investment in the Funds.
ALPS Distributors, Inc. is the distributor for the abrdn ETFs. ALPS is not affiliated with abrdn.
abrdn Bloomberg All Commodity Strategy K-1 Free ETF (BCI) – Factsheet, Prospectus
abrdn Bloomberg All Commodity Longer Dated Strategy K-1 Free ETF (BCD) – Factsheet , Prospectus
abrdn Bloomberg Industrial Metals Strategy K-1 Free ETF (BCIM) – Factsheet , Prospectus
For Investment Professional Use Only
ETF002043 6/5/24
AA-050623-163677-1
’33 Act Disclosure
PAST PERFORMANCE IS NOT AN INDICATION OF FUTURE RESULTS. The statements and opinions expressed are those of the author and are as of the date of this report. All information is historical and not indicative of future results and subject to change. The reader should not assume that an investment in any securities and/or precious metal mentioned was or would be profitable in the future. This information is not a recommendation to buy or sell. Past performance does not guarantee future results.
The abrdn Gold ETF Trust is not an investment company registered under the Investment Company Act of 1940 or a commodity pool for purposes of the Commodity Exchange Act. Shares of the Trust are not subject to the same regulatory requirements as mutual funds. Commodities generally are volatile and are not suitable for all investors. Trusts focusing on a single commodity generally experience greater volatility. Please refer to the prospectus for complete information regarding all risks associated with the Trust. Shares in the Trust are not FDIC insured and may lose value and have no bank guarantee.
The value of the shares relates directly to the value of the precious metal held by the Trust and fluctuations in the price could materially adversely affect investment in the shares. Several factors may affect the price of precious metal, including:
A change in economic conditions, such as a recession, can adversely affect the price of the precious metal held by the Trust. Some metals are used in a wide range of industrial applications, and an economic downturn could have a negative impact on its demand and, consequently, its price and the price of the shares;
Investors’ expectations with respect to the rate of inflation;
Currency exchange rates;
Interest rates;
Investment and trading activities of hedge funds and commodity funds; and Global or regional political, economic or financial events and situations. Should there be an increase in the level of hedge activity of the precious metal held by the Trust or producing companies, it could cause a decline in world precious metal prices, adversely affecting the price of the shares.
Also, should the speculative community take a negative view towards the precious metal held by the Trust, it could cause a decline in prices, negatively impacting the price of the shares. There is a risk that part or all of the Trust’s physical metal could be lost, damaged or stolen. Failure by the custodian or sub-custodian to exercise due care in the safekeeping of the metal held by the Trust could result in a loss to the Trust. The Trust will not insure its metal and shareholders cannot be assured that the custodian will maintain adequate insurance or any insurance with respect to the metal held by the custodian on behalf of the Trust. Consequently, a loss may be suffered with respect to the Trust’s metal that is not covered by insurance.
Investors buy and sell shares on a secondary market (i.e., not directly from Trust). Only market makers or “authorized participants” may trade directly with the Trust, typically in blocks of 50k to 100k shares.
Diversification does not eliminate the risk of experiencing investment losses.
Trading in commodities entails a substantial risk of loss and is not suitable for all investors.
Commodities generally are volatile and are not suitable for all investors. Carefully consider the Fund’s investment objectives, risk factors, and fees and expenses before investing. This material must be accompanied or preceded by prospectus. Please see the prospectus for abrdn Physical Gold Shares ETF.
abrdn Physical Gold Shares ETF (SGOL) – Factsheet , Prospectus
Please read the prospectus carefully before investing.
ALPS Distributors, Inc. is the marketing agent.
ALPS is not affiliated with abrdn.
’40 Act Disclosure
An investor should consider the investment objectives, risks, charges and expenses of the ETFs carefully before investing. To obtain a prospectus containing this and other important information, call 844-ETFS-BUY (844-383-7289) or visit www.abrdn.com/us/etf. Read the prospectus carefully before investing.
Diversification does not eliminate the risk of experiencing investment losses. Liquidity describes the degree to which an asset can be quickly bought or sold in the market at a price reflecting its intrinsic value. Brokerage commission may apply and would reduce returns.
Fund Risk: There are risks associated with investing including possible Joss of principal. Commodities generally are volatile and are not suitable for all investors. There can be no assurance that the Fund’s investment objective will be met at any time. The commodities markets and the prices of various commodities may fluctuate widely based on a variety of factors. Because the Fund’s performance is linked to the performance of highly volatile commodities, investors should consider purchasing shares of the Fund only as part of an overall diversified portfolio and should be willing to assume the risks of potentially significant fluctuations in the value of the Fund.
Through holding of futures, options and options on futures contracts, the Fund may be exposed to (i) losses from margin deposits in the case of bankruptcy of the relevant broker, and (ii) a risk that the relevant position cannot be close out when required at its fundamental value. In pursuing its investment strategy, particularly when rolling futures contracts, the Fund may engage in frequent trading of its portfolio of securities, resulting in a high portfolio turnover rate.
As a “non-diversified” fund, the Fund may hold a smaller number of portfolio securities than many other funds. To the extent the Fund invests in a relatively small number of issuers, a decline in the market value of a particular security held by the Fund may affect its value more than if it invested in a larger number of issuers. The value of Shares may be more volatile than the values of shares of more diversified funds.
During situations where the cost of any futures contracts for delivery on dates further in the future is higher than those for delivery closer in time, the value of the Fund holding such contracts will decrease over time unless the spot price of that contract increases by the same rate as the rate of the variation in the price of the futures contract. The rate of variation could be quite significant and last for an indeterminate period of time, reducing the value of the Fund.
Changes in the laws of the United States and/or the Cayman Islands, under which the Fund and the Subsidiary are organized, respectively, could result in the inability of the Subsidiary to operate as intended and could negatively affect the Fund and its shareholders.
To the extent the Fund is exposed directly or indirectly to leverage {through investments in commodities futures contracts) the value of that Fund may be more volatile than if no leverage were present.
In order to qualify for the favorable U.S. federal income tax treatment accorded to a regulated investment company (“RIC”), the Fund must derive at least 90% of its gross income in each taxable year from certain categories of income (“qualifying income’) and must satisfy certain asset diversification requirements. Certain of the Fund’s investments will not generate income that is qualifying income. The Fund intends to hold such commodity-related investments indirectly, through the Subsidiary. The Fund believes that income from the Subsidiary will be qualifying income because it expects that the Subsidiary will make annual distributions of its earnings and profits. However, there can be no certainty in this regard, as the Fund has not sought or received an opinion of counsel confirming that the Subsidiary’s operations and resulting distributions would produce qualifying income for the Fund. If the Fund were to fail to meet the qualifying income test or asset diversification requirements and fail to qualify as a RIC, it would be taxed in the same manner as an ordinary corporation, and distributions to its shareholders would not be deductible by the Fund in computing its taxable income.
Investors buy and sell shares on a secondary market (i.e., not directly from trust). Only market makers or “authorized participants” may trade directly with the fund, typically in blocks of 25k to 100k shares.
“Bloomberg®”, “Bloomberg Commodity IndexSM,” “Bloomberg Commodity Index 3Month ForwardSM” and “Bloomberg Industrial Metals Subindex Total ReturnSM” are service marks of Bloomberg Finance L.P. and its affiliates, including Bloomberg IndexServices Limited (“BISL”), the administrator of the indices (collectively, “Bloomberg”) and have been licensed for use for certain purposes by abrdn ETFs Advisors LLC. Bloomberg is not affiliated with abrdn ETFs Advisors LLC, and Bloomberg does not approve, endorse, review, or recommend abrdn Bloomberg All Commodity Strategy K-1 Free ETF (BCI), abrdn Bloomberg All Commodity Longer Dated Strategy K-1 FreeETF (BCD), and abrdn Bloomberg Industrial Metals K-1 Free ETF (BCIM). Bloomberg does not guarantee the timeliness, accurateness, or completeness of any data or information relating to Bloomberg Commodity IndexSM. Please see the current prospectus at www. abrdn.com/us/etf for more information regarding the risk associated with an investment in the Funds.
ALPS Distributors, Inc. is the distributor for the abrdn ETFs. ALPS is not affiliated with abrdn.
abrdn Bloomberg All Commodity Strategy K-1 Free ETF (BCI) – Factsheet, Prospectus
abrdn Bloomberg All Commodity Longer Dated Strategy K-1 Free ETF (BCD) – Factsheet , Prospectus
abrdn Bloomberg Industrial Metals Strategy K-1 Free ETF (BCIM) – Factsheet , Prospectus
For Investment Professional Use Only
ETF002043 6/5/24
AA-050623-163677-1