iShares, the exchange-traded funds platform of BlackRock, has launched five funds focused on commodity producers - including agriculture, energy, select metals, mining, gold and silver.

The funds aim to offer access to companies involved in the production of these commodities without exposure to physical storage or the additional costs associated with ownership, the firm said in a statement.

The Global Agriculture Producers Fund, Global Energy Producers Fund, Global Select Metals and Mining Producers Fund, Global Gold Miners Fund, and the Global Silver Miners Fund are traded on the NYSE Arca.

“Commodities are a key allocation in many portfolios, often used as portfolio diversifiers or a hedge against inflation,” said Darek Wojnar, head of US iShares product development and management.

The firm said that the ETFs comprise companies which are at (or near) the initial phase of commodity production. 

This enables investors seeking to express a view on, say, global food prices, to use the Global Agriculture Producers Fund to target the face of the production chain - such as fertilisers or agricultural materials - while avoiding tail-end exposure to companies relating to packaging and marketing, for instance.

“Through these new funds, investors can implement an equity-based solution for achieving highly targeted exposure to appealing commodity sectors, complementing or even replacing physically-backed or futures-based commodities approaches,” said Wojnar.

The five funds track MSCI indices, identifying companies with greater sensitivity to underlying commodity prices, the firm said.