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Threshold crossed as commodities stage a comeback fueled by global economic recovery
NEW YORK, Feb. 23, 2021 (GLOBE NEWSWIRE) -- The GraniteShares Bloomberg Commodity Broad Strategy No K-1 ETF (NYSE Arca: COMB), the lowest-cost broad-based commodity ETF on the U.S. market, has crossed $100 million in assets under management (AUM). COMB AUM growth and improved market outlook may be an indication that the commodities sector has started a new super cycle.
Launched in May 2017, COMB does not issue K-1s and has an annual management fee of just 0.25%.
“A confluence of variables signal we’re on the verge of a commodities comeback,” said Will Rhind, Founder and CEO of GraniteShares. “With the global economy rebounding, more stimulus in the pipeline and expectations of a weakening dollar and increasing inflation, we anticipate a favorable environment for commodities over the next several years. Investors can access this potential growth through a low-cost no-K1 ETF like COMB.”
Benchmarked to the Bloomberg Commodity Index, COMB captures 23 different commodities across five economic sectors, including grains, energy, precious and base metals, softs and livestock. Historically, broad commodity exposure has helped counteract the negative impacts of inflation.
GraniteShares has three areas of expertise; Commodities, Income and Disruptive Core Equity. In addition to COMB, the firm offers the GraniteShares Gold Trust (BAR) and the GraniteShares Platinum Trust (PLTM). The firm also offers unique investment strategies for income and large-cap equities: The GraniteShares HIPS U.S. High Income ETF (HIPS) and the GraniteShares XOUT U.S. Large Cap ETF (XOUT).
For more information on COMB and GraniteShares, please visit https://www.graniteshares.com.
Headquartered in New York City, GraniteShares is an entrepreneurial ETF provider focused on providing investors with innovative, cutting edge investment solutions. We believe the future of investing lies at the nexus of alternative thinking, low fees and disruptive product structures—the core of our beyond beta philosophy. Backed by Bain Capital Ventures, we launched our first product in 2017 and are now among the fastest growing ETF issuers with over $1.4 Billion in assets under management spanning a full array of investment strategies.
Gregory FCA for GraniteShares
Kathleen Elicker, 484-889-6597
Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, please call (844) 476 8747 or click here. Read the prospectus or summary prospectus carefully before investing.
Index performance does not represent the ETF’s performance. It is not possible to invest directly in an index.
Indexes are unmanaged and index returns do not include investment fees and expenses.
Bloomberg Commodity Index: Bloomberg Commodity Index (BCOM) is a financial benchmark designed to provide liquid and diversified exposure to physical commodities via futures contracts. The weightings of the components of the BCOM Benchmark are based on (1) liquidity data, which is the relative amount of trading activity of a particular commodity; (2) production data, which measures the importance of a commodity to the world economy; and (3) diversification rules that attempt to reduce disproportionate weightings of any single commodity.
The K-1 is an Internal Revenue Service (IRS) tax form issued annually for an investment in partnership interests. The purpose of the K-1 is to report each partner's share of the partnership's earnings, losses, deductions, and credits.
You could lose money by investing in the ETFs. There can be no assurance that the investment objective of the Funds will be achieved. None of the Funds should be relied upon as a complete investment program. The investment program of the Fund is speculative, entails substantial risks and include asset classes and investment techniques not employed by more traditional mutual funds. Investments in the ETFs are not bank deposits and are not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.
Investing in physical commodities, including through commodity-linked derivative instruments such as Commodity Futures, Commodity Swaps, as well as other commodity-linked instruments, is speculative and can be extremely volatile, and may not be suitable for all investors. Market prices of commodities may fluctuate rapidly based on numerous factors, including: changes in supply and demand relationships (whether actual, perceived, anticipated, unanticipated or unrealized); weather; agriculture; trade; domestic and foreign political and economic events and policies; diseases; pestilence; technological developments; currency exchange rate fluctuations; and monetary and other governmental policies, action and inaction. Derivatives may be more sensitive to changes in market conditions and may amplify risks.
A liquid secondary market may not exist for the types of commodity-linked derivative instruments the Fund buys, which may make it difficult for the Fund to sell them at an acceptable price. The Fund is new with no operating history. As a result, there can be no assurance that the Fund will grow to or maintain an economically viable size, in which case it could ultimately liquidate.
Because the Fund may effect redemptions principally for cash, rather than in-kind distributions, an investment in Fund shares may be less tax efficient than investments in shares of conventional ETFs, and there may be a substantial difference in the after-tax rate of return between the Fund and conventional ETFs.
The Fund may engage in frequent trading of derivatives. Active and frequent trading may lead to the realization and distribution to shareholders of higher short-term capital gains, which would increase their tax liability. Frequent trading also increases transaction costs, such as commissions, which could detract from the Fund’s performance.
The Fund is not a diversified investment, it may be more volatile than other investments.
“Bloomberg®” and “Bloomberg Commodity IndexSM” are service marks of Bloomberg Finance L.P. and its affiliates (collectively, “Bloomberg”) and have been licensed for use for certain purposes by GraniteShares Inc. Neither Bloomberg nor UBS Securities LLC and its affiliates (collectively, “UBS”) are affiliated with GraniteShares Inc., and Bloomberg and UBS do not approve, endorse, review, or recommend any GraniteShares ETF. Neither Bloomberg nor UBS guarantees the timeliness, accurateness, or completeness of any data or information relating to Bloomberg Commodity IndexSM.
This information is not an offer to sell or a solicitation of an offer to buy shares of any Funds to any person in any jurisdiction in which an offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction.
THE FUND IS DISTRIBUTED BY ALPS DISTRIBIUTORS, INC. GRANITESHRES IS NOT AFFILIATED WITH ALPS DISTRIBUTORS, INC