Core Insights - The Neuberger Berman Commodity Strategy ETF (NBCM) has increased nearly 18% in 2025, driven primarily by precious metals like gold and silver [1] - NBCM, with nearly $296 million in assets under management, allocates 26.6% of its portfolio to precious metals, indicating strong performance this year and potential for continued success into 2026 [3][4] - Market analysts predict that the bull market for precious metals may expand into industrial metals such as copper and aluminum in 2026, influenced by anticipated changes in Federal Reserve leadership and economic conditions [4][5] Group 1 - NBCM is positioned for potential upside in 2026 due to its active management and broad exposure to the commodities market [2][4] - The ETF's allocation includes 16% to industrial metals, with aluminum among its top holdings, suggesting a strategic approach to capitalize on future market trends [5][6] - Citi forecasts a constructive medium-term outlook for copper, estimating a base case price of $12,000 per ton, which represents approximately 20% upside over the next six to twelve months [7]

Core Insights - Gold is expected to be a leading commodity in 2025, driven by a weakening dollar and other factors [1] - The Neuberger Berman Commodity Strategy ETF (NBCM) has a significant allocation to gold, enhancing its performance this year [2][3] - NBCM's active management allows for flexible adjustments in commodity exposure, particularly to gold and silver, which are anticipated to benefit from rising bullion prices [3] Market Dynamics - The increase in gold prices is supported by fundamental factors such as geopolitical tensions, economic policies, and concerns regarding the Federal Reserve [4] - Morgan Stanley has raised its 2026 gold price forecast to $4,400 per troy ounce, up from a previous estimate of $3,313, indicating potential appreciation [5] - Expectations of further interest rate cuts by the Federal Reserve could weaken the dollar and enhance gold's appeal as a safe-haven asset [6][7] Historical Context - Historically, gold prices have risen by an average of 6% in the 60 days following the initiation of a Federal Reserve rate-cutting cycle, as lower yields make gold more attractive [8]

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]