In this article, we discuss 5 best commodity ETFs to buy. If you want to read our discussion on the commodities market, head over to 10 Best Commodity ETFs.
5. Invesco DB Commodity Index Tracking Fund (NYSE:DBC)
5-Year Performance as of October 10: 46.03%
Invesco DB Commodity Index Tracking Fund (NYSE:DBC) seeks to replicate the performance of the DBIQ Optimum Yield Diversified Commodity Index Excess Return. The ETF was launched in February 2006 and provides investors exposure to futures in over 14 liquid commodities, including gasoline, crude oil, sugar, gold, and copper. Furthermore, Invesco DB Commodity Index Tracking Fund (NYSE:DBC) also makes interest earnings from US Treasury securities and income from money market investments. As of October 10, the ETF maintains an expense ratio of 0.87%. The major holdings for the ETF involve futures for commodities such as WTI crude, soybeans, corn, and sugar.
4. abrdn Physical Precious Metals Basket Shares ETF (NYSE:GLTR)
5-Year Performance as of October 10: 50.14%
The goal for the abrdn Physical Precious Metals Basket Shares ETF (NYSE:GLTR) is to mimic the price performance of physical gold, silver, platinum, and palladium. The ETF offers investors an economical method to invest in Bullion, while minimizing credit risk. abrdn Physical Precious Metals Basket Shares ETF (NYSE:GLTR) was launched in October 2021 to provide cost-effective access to a basket of precious metals. As of October 10, the ETF manages total assets worth $899.65 million and maintains an expense ratio of 0.60%. It is one of the best commodity ETFs to invest in.
3. SPDR Gold Shares (NYSE:GLD)
5-Year Performance as of October 10: 57.92%
SPDR Gold Shares (NYSE:GLD) is the largest physically-backed gold exchange traded fund in the world. It was launched in November 2004 to provide investors with an alternate, comparatively cost-effective, and secure approach to entering the gold market. Unlike traditional investments like equities and bonds, the factors influencing the value of gold are distinct. Ergo, the ETF helps investors diversify their holdings. As of October 10, the ETF features an expense ratio of 0.40%.
2. iShares Gold Trust (NYSE:IAU)
5-Year Performance as of October 10: 59.18%
The iShares Gold Trust (NYSE:IAU) mirrors the price performance of gold, while offering investors an exposure to the daily fluctuations in the price of gold bullion and providing a convenient and cost-effective means to access physical gold. It is one of the best commodity ETFs to watch. The ETF was introduced in January 2005, to help investors to diversify their portfolio, while acting as a safeguard against inflation. The reference benchmark for the iShares Gold Trust (NYSE:IAU) is the LBMA Gold Price. As of October 10, the total net assets of the fund are valued at $24.5 billion, while featuring a sponsor fee of 0.25%.
1. KraneShares Global Carbon ETF (NYSE:KRBN)
5-Year Performance as of October 10: 78.74%
The KraneShares Global Carbon ETF (NYSE:KRBN) is linked to IHS Markit’s Global Carbon Index, which provides comprehensive coverage of cap-and-trade carbon allowances by monitoring the most liquid carbon credit futures contracts. The ETF was launched in July 2020 to provide a fresh and responsible investing approach for investors looking to diversify their portfolios by taking a bullish position on the price of carbon. The index features prominent cap-and-trade programs in Europe and North America, including European Union Allowances (EUA), California Carbon Allowances (CCA), and the United Kingdom Allowances (UKA). As of October 10, the fund features total net assets worth $478.33 million, with a total expense ratio of 0.79%.
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