NEW YORK ( TheStreet) -- Once considered a darling among investors, the commodities market has become noticeably volatile in recent weeks as looming macroeconomic headwinds have weighed heavily on investor confidence in the global growth picture.
Growth-correlated resources have not been the only commodities to take hits, however. On the contrary, even gold recently came under pressure. iShares Gold Trust (IAU) is off nearly 10% over the past month.
As resource prices continue to struggle to find stability, it will be tempting to make alterations with every fluctuation. Long-term investors, however, will need to exercise patience and flexibility in order to come out unscathed. For some, the time and effort needed to construct and maintain a strong portfolio may prove to be too daunting.
Luckily for those individuals who would prefer taking a hands-off approach to traversing the commodities realm at these questionable times, there are a handful of options at their disposal.The WisdomTree Managed Futures Strategy Fund (WDTI) is designed to target a diversified basket of commodity and international currency futures using a pseudo-active, quantitative investment strategy. By opting to either go long or short any particular holding, the fund's managers can adjust its exposure to reflect any type of investing environment. For example, as of Oct. 10, WDTI was flat energy; short grains, industrial metals, precious metals, and soft commodities futures; and long livestock contracts. On the currency front, the fund appears to be betting on the strength of the U.S. dollar; it is currently short the euro, Australian dollar, Swiss franc, Canadian dollar, and British pound. The Japanese dollar is the fund's only other long currency bet. These holdings are not set in stone. Rather, according to the fund's prospectus, the individual sectors comprising WDTI's portfolio are rebalanced back to their base weights and reevaluated at the end of each month and year. Throughout the past few months of volatile action, investors opting to use WDTI to manage their commodities exposure have benefited. Although the fund has dipped slightly more than 6% over the past three months, its downturn has been contained relative to passive, long-only commodity ETFs like the PowerShares DB Commodity Fund (DBC). It has seen inklings of a rebound in recent days, but DBC still has plenty of ground to cover to recover from the 10% decline it has witnessed over this period.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV