Will Rhind is the Founder & CEO of GraniteShares. We recently sat down with Will, who will be speaking at our 4th Annual Liquid Alternative Strategies Summit (May 1 – NYC), as he shared with us his views on the diversification potential of a commodities allocation.
JV Events Group: How do you differentiate your strategy from others in the Commodities space?
Will Rhind: Graniteshares is a low cost provider of commodity ETFs. Graniteshares currently offers the lowest cost commodity ETFs with no K-1s*. Our 2 flagship broad commodity ETFs; COMB and COMG are benchmarked against the Bloomberg Commodity Index & S&P GSCI Index respectively. Graniteshares Gold Trust, BAR and Graniteshares Platinum Trust, PLTM track the spot prices of gold and platinum*. Graniteshares has an in-house portfolio management with over 35years years’ experience managing commodity type investments.
JV Events Group: Are we in the midst of a new Commodities super-cycle?
Will Rhind: The commodities market bottomed in early 2016 as measured by the Bloomberg Commodity index. Since then the market has entered a rebalancing phase where falling production and rising demand have lifted prices, returning the supply-demand balance to equilibrium. This is typically the last phase in the cycle before demand outweighs supply, reducing inventories and creating upward momentum in prices or in other words a new bull market
JV Events Group: What is the expected correlation of your fund to the broad equity and fixed income markets?
Will Rhind: Historical correlations for both broad commodities and gold to the equity or bond market are low. In the post crisis era, years of global quantitative easing and low growth skewed correlations for many asset classes, including commodities. However, with gradual normalization of economic conditions, correlations are generally back to historical norms, reinforcing the diversification potential of a commodities allocation.
JV Events Group: How does your fund fit into a broad-based portfolio?
Will Rhind: There are generally speaking, two reasons why people include an allocation to commodities as part of a diversified portfolio: to diversify the portfolio exposure from over concentration in stocks and bonds, or to help protect the portfolio against rising inflation. Whether you are minded one way or another, Graniteshares has a solution for your portfolio.
JV Events Group: Thanks Will. We look forward to hearing more of your thoughts at the 4th Annual Liquid Alternative Strategies Summit May 1st in NYC.
*Source, Bloomberg, Feb 27th. Graniteshares Bloomberg Commodity Broad Strategy No K-1 ETF (COMB), Graniteshares Gold Trust (BAR) & Graniteshares Platinum Trust (PLTM).