Commodities are a distinct asset class with returns that are largely independent of stock and bond returns. Commodities are basic goods interchangeable between producers, such as grains, gold, oil, and natural gas, just to name a few. As an asset class, they are highly speculative and are especially sensitive to economic shifts.

Commodities have also evolved as an asset class with the development of commodity futures indexes and subsequently, investment vehicles that benchmark against these indices. Investors can choose from a variety of vehicles for investing in the commodities futures markets, from mutual funds to exchange-traded funds, covering the wide spectrum from single commodity exposures to sector based and broad based commodity exposures.