ETFdb.com is recommending a new long position for the month ahead. This long recommendation is meant to serve as a defensive position that should offer uncorrelated returns to the broad equity market. Below, we outline our investment thesis and outlook for the new recommendation.

This position is motivated by lingering volatility in the equity and bond markets which has spurred an investor migration towards previously neglected alternative asset classes.

The new long recommendation is based around:

  • Futures-Based Commodity ETP that is in green territory for the past 4 weeks, up almost 4%.
  • This ETP is fairly equally diversified across more than half a dozen agricultural commodities.
  • This is the most popular broad agriculture ETP in terms of AUM and average trading volume.
  • Despite being one of the few green areas in October, this ETP still saw outflows of $3.4M in the past month and almost $29M year-to-date.

Be sure to check our previous sell pick here.

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