Novice Precious Metals Investors Can Try The “DBP” ETF – ETF Trends



It’s difficult to ignore the precious metal gains, especially during the height of the Covid-19 pandemic that saw gold and even silver reach record highs. For the novice precious metal investors, they might want to get a little bit of everything with exchange-traded funds (ETFs) like the Invesco DB Precious Metals Fund (DBP).

DBP seeks to track changes, whether positive or negative, in the level of the DBIQ Optimum Yield Precious Metals Index Excess ReturnTM (DBIQ Opt Yield Precious Metals Index ER or Index) over time plus the income from the Fund’s holdings of US Treasury securities, money market funds and T-Bill ETFs, less the Fund’s expenses. The Fund is designed for investors who want a cost-effective and convenient way to invest in commodity futures.

Additionally, the Index is a rules-based index composed of futures contracts on two of the most important precious metals ” gold and silver. The Fund and the Index are rebalanced and reconstituted annually in November.

DBP Chart

Where Does Gold Go From Here?

When it comes to precious metals investing, gold is typically the bellwether, but where does the commodity go from here? Is there more upside ahead or will the precious metal suffer from a rallying dollar?

Per a MarketWatch report, gold “has moved in line with the dollar’s strength absent other catalysts of late but some longer-term investors believe that a resurgence of the pandemic and the belief that the viral outbreak
Source…