The investment seeks to provide broad exposure to commodities and an appreciation of capital. The fund advisor uses an active investment management approach to invest the fund's assets in commodity-related investments, which are backed by a portfolio of inflation-linked investments and other fixed-income securities. The Fund seeks to provide broad exposure to commodities and an appreciation of capital. The Fund advisor uses an active investment management approach to invest the Fund's assets in commodity-related investments, which are backed by a portfolio of inflation-linked investments and other fixed-income securities.
In a press release, Vanguard said that the fund will offer investors greater portfolio diversification, along with a possible hedge against inflation risk, by investing mainly in commodities and Treasury securities protected against inflation (TIPS). The Vanguard Commodity Strategy Fund will seek to surpass Bloomberg's total commodity return index by investing in commodity derivative investments, such as commodity futures and swaps, guaranteed by a combination of Treasury bills (Treasury bills) and short-term TIPS, which add an additional layer of protection against inflation.
