How do you invest in cobalt mines

Fund in focus: commodity funds Gold, copper, lithium & Co.

What are commodity funds?

With commodity funds, private investors can invest in the international commodity markets and benefit indirectly from price developments. These include, for example, the markets for precious metals, industrial metals, oil and agricultural raw materials. Portfolio managers of commodity funds invest the investor capital indirectly in commodities, since a direct investment in commodities for investment funds is usually not possible for legal or logistical reasons. They often invest in stocks of companies that mine, process and sell raw materials (e.g. gold mining funds), but also in precious metal securities or other commodity funds. The focus can also be on derivatives, such as futures. These are usually contracts in which the delivery of the goods takes place at a later point in time or a cash settlement. Some commodity funds operate with long-short strategies (betting on rising and falling prices) in order to achieve a return in any market situation.

Commodity funds for broad portfolio diversification

Commodity funds are ideally suited to diversifying the portfolio more broadly. Since commodity sectors hardly correlate with the stock or bond markets, commodity funds are well suited as an addition to the portfolio. Investors should consider costs and performance when choosing. It is also important to know that some commodity markets are relatively small. A changed situation in terms of supply or demand can quickly affect prices. Larger price fluctuations in the fund are possible as a result. Due to the gold bull market in recent years, so-called gold mine funds were in high demand from investors until recently.

Invest in commodity funds now

Investors have the opportunity to invest in a large number of commodity funds - with without an initial charge - and to benefit from the potential for opportunities. The most popular are funds with a focus on precious and industrial metals. A selection of popular commodity funds can be found here:

Popular commodity funds:

SurnameISINFund categoryprofile
STABILITAS - Pacific Gold + Metals PLU0290140358Equity funds commodities precious metalsManagement invests in shares of mine operators in the Pacific region
Structured Solutions SICAV - Next Generation ResourcesLU0470205575 Equity funds commodities industrial metalsFocus on companies that are committed to the "next generation raw materials": e.g. lithium, cobalt or graphite
AGIF - Allianz Global Metals and MiningLU0589944643Equity funds commoditiesEngagement in the global equity market in the mineral resources segment
RobecoSAM Smart Materials FundLU0175575991 Equity funds commoditiesThe portfolio includes companies that offer technologies, products and services related to raw materials (mining / efficient handling)
Bakersteel Global Funds SICAV - Precious MetalsLU1128909394 Equity funds commoditiesInvests the majority of the fund's assets in mining and mining companies in Canada and Australia

Performance over the five-year period