Rising inflation in January, the potential added pressure from tariffs, and ongoing volatility create a strong backdrop for gold price appreciation this year. The precious metal currently makes up the largest holding in the actively managed Neuberger Berman Commodity Strategy ETF (NBCM ) as of mid-February.
Last year’s dynamic inflation and rate environment resulted in a 26% appreciation in gold prices, reported Forbes, as investors flocked to the safe-haven precious metal. Prices continued to make significant gains in the opening months of 2025. Gold climbed to $2,950 per troy ounce in trading on Tuesday after notching record highs last week. As the precious metal flirts with the key $3,000 psychological threshold, ongoing macroeconomic risks create the potential for further tailwinds for gold prices this year.
“Gold is trading at an all-time high. Surveys suggest that even longer-term consumer inflation expectations are stuck above 3%, and market inflation expectations are creeping upward,” Jeff Blazek, co-CIO, multi-asset strategies and Erik Knutzen, CFA, Co-CIO, multi-asset strategies at NB explained in the firm’s CIO Weekly Perspectives. “Most prominently, seemingly every commentator worries about the inflationary impact of tariffs.”
The threat of climbing inflation and the potential for interest rate hikes instead of cuts this year could lead to further market volatility. It’s an environment where safe havens, such as gold, generally hold great appeal for investors and banks alike. Many central banks also continue to buy gold, driving consistent demand and the potential for further pricing pressures.
Harness Gold Gains With NBCM
The actively managed NBCM seeks total returns by investing in a diverse portfolio of commodities. By using a risk-weighted approach, it seeks to reduce the impacts of market volatility. The strategy also focuses on commodity scarcity and works to hedge for the potential of backwardation and demand.
NBCM invests globally across six different sectors and 28 commodities that include gold and other metals, oil, agricultural products, and natural gas. Gold is currently the largest commodity within the fund at s 14.53% weight as of February 14, 2025. Natural gas at 8.59%, brent crude at 8.06%, WTI crude at 6.71%, and copper at 6.18% weight round out the top five holdings.
The fund managers use quantitative models and fundamental analysis when evaluating securities for short- and long-term opportunities and optimizing roll yield. NBCM invests in long and short positions in commodities and fixed income securities, most of which are investment-grade bonds.
The fund is up 7.17% on a total return basis YTD as of February 14, 2025 according to Y-Charts data. Over the last year, NBCM generated a total return of 14.58%.
NBCM carries an expense ratio of 0.65%.
For more news, information, and analysis, visit the Invest Beyond Cash Channel.
