Core Insights - Gold and silver are among the best-performing assets this year, reaching all-time highs and significantly outperforming the S&P 500 [1] - The Neuberger Berman Commodity Strategy ETF (NBCM) is benefiting from its substantial allocation to precious metals, confirming the advantages of including them in a diversified investment strategy [2][3] Group 1: Performance of Precious Metals - Gold and silver have generated returns that exceed those of the S&P 500, making them standout assets in the current market [1] - NBCM, which is actively managed, has also outperformed the S&P 500 this year, highlighting the effectiveness of its investment strategy [2] Group 2: Allocation and Strategy - As of the end of the second quarter, precious metals represented the largest sector exposure in NBCM, with a 17.7% allocation to gold, which is more than double the ETF's second-largest exposure [3] - The management style of NBCM allows for flexibility in increasing exposure to gold and silver, especially during a period rich with catalysts for these metals [4] Group 3: Market Catalysts - Factors driving gold prices include ongoing purchases by global central banks and the anticipated lowering of interest rates by the Federal Reserve, which enhances gold's appeal as it does not yield dividends or interest [5] - Silver has experienced a significant rally, reaching prices not seen since the 1980s, although it may be showing signs of a temporary peak [6] Group 4: Supply Dynamics - The market for silver is characterized by structural deficits, with five consecutive years of global supply shortfalls leading to a persistent short squeeze [7] - The tight supply situation is exacerbated by lagging industrial recycling volumes and strong import activity from India, indicating robust demand for silver [7]

Market Overview - The stock market has faced significant declines due to weak economic data, tariff concerns, higher-than-expected inflation, and fears regarding AI capital expenditures, with the Nasdaq Composite down nearly 15% from its recent high [1] - Financial technology (fintech) stocks have been particularly hard hit, influenced by concerns over slower consumer spending and profit margins [2] Company Performance - Notable fintech companies have seen substantial declines: Shopify is down 26% since mid-February, Block has fallen 42% from its 2025 peak, and SoFi has decreased by 35% since January [3] Investment Opportunity - The Ark Fintech Innovation ETF is highlighted as a potential investment opportunity, especially in a turbulent market where individual stock selection can be challenging [4] - Unlike passive index funds, the Ark Fintech Innovation ETF is actively managed, aiming to outperform benchmark indices by selecting a diverse range of fintech stocks [5][6] ETF Composition - As of March 30, 2025, the top 10 holdings of the Ark Fintech Innovation ETF include: - Shopify (10.1% of assets, $125 billion market cap) - Coinbase (7.1%, $44 billion) - Robinhood (6.1%, $37 billion) - Other notable companies include Block, Palantir, and MercadoLibre, providing a mix of e-commerce, cryptocurrency, payment processing, and cybersecurity stocks [7] Market Outlook - Despite short-term cyclicality and headwinds, there is a significant long-term opportunity in the fintech sector, with the potential to acquire promising stocks at discounted prices due to recent market weaknesses [12]