DBB: Not The Right ETF For This Market

(7min)

Summary

  • Invesco’s DB Base Metals ETF is designed to provide exposure to copper, aluminum, and zinc.
  • Tariffs have led to substantial differentials forming between Comex and LME prices but, unfortunately, DBB’s metal sits on the wrong side of the Atlantic.
  • The metals are very different, they are mined in different places, employed in different products, and subject to different market dynamics; so why put them in the same fund.

Aluminium as Element 13 of the Periodic Table 3D rendering on blue background

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Introduction

The sudden turn by the United States towards a more protectionist and resource nationalist stance under the Trump administration has certainly roiled up markets over the last few months. And as most investors are probably

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