The best commodity ETFs
How do I invest in a broad commodities basket?
Investing in commodities is considered risky. However, from a diversification perspective it can be interesting to invest in commodities. In particular, the historically negative correlation of commodities to stocks can improve portfolio diversification. A commodities investment is generally realised through an investment in forward or futures contracts. Commodity indices usually track a basket of commodities.
There are several indices available to invest with ETFs in a broad basket of commodities. There are also subindices on single or selected commodity segments, which are usually derived from broad basket indices. This Investment Guide will help you navigate among the peculiarities of the most important commodity indices, which vary substantially in their methodologies. It will allow you to find the most suitable ETFs for you by ranking them according to your preferences.
0.15% p.a. - 0.60% p.a.
annual total expense ratio (TER) of commodity ETFs
5 Indices
on commodities, which are tracked by ETFs
12 ETFs
on commodities
The best commodity ETF by 1-year fund return as of 29/02/2024
| 1 | UBS ETF (IE) CMCI Composite SF UCITS ETF (USD) A-acc | -4.22% | ||
| 2 | Market Access Rogers International Commodity UCITS ETF | -5.28% | ||
| 3 | -8.08% |
All commodity ETFs ranked by fund return
The largest commodity ETF by fund size in GBP
| 1 | Invesco Bloomberg Commodity UCITS ETF Acc | 1,810 m | ||
| 2 | iShares Diversified Commodity Swap UCITS ETF | 1,074 m | ||
| 3 | UBS ETF (IE) CMCI Composite SF UCITS ETF (USD) A-acc | 1,041 m |
All commodity ETFs ranked by fund size
The cheapest commodity ETF by total expense ratio
| 1 | 0.15% p.a. | |||
| 2 | Invesco Bloomberg Commodity UCITS ETF Acc | 0.19% p.a. | ||
| 3 | iShares Diversified Commodity Swap UCITS ETF | 0.19% p.a. |
All commodity ETFs ranked by total expense ratio
Commodity indices compared
Diversification of the most important commodity indices
Source: justETF Research; Strategic weights of the single commodity segments
Methodologies of the most important commodity indices
| Bloomberg Commodity | Rogers International Commodity (RICI) | |
|---|---|---|
| Number of ETFs | 5 ETFs | 1 ETF |
| Number of commodities | 23 | 38 |
| Index review | annually | annually (index is rebalanced monthly) |
| Selection criteria | Economic significance (production), diversification, continuity and liquidity | Global consumption and liquidity (reviewed by a committee) |
| Index weighting | 1/3 production 2/3 liquidity | Global consumption and liquidity (reviewed by a committee) |
| Cap on single commodity | 15% | - |
| Cap on commodities segment | 33% | - |
| Optimised Roll Commodity | UBS CMCI | |
|---|---|---|
| Number of ETFs | 2 ETFs | 1 ETF |
| Number of commodities | 23 | 28 |
| Index review | annually | annually (index is rebalanced monthly) |
| Selection criteria | Economic significance (production), diversification, continuity and liquidity | Fundamental factors and liquidity |
| Index weighting | 1/3 production 2/3 liquidity | Fundamental factors and liquidity |
| Cap on single commodity | 15% | 35% largest commodity 20% all others |
| Cap on commodities segment | 33% | - |
Source: justETF Research; As of 31/05/2021
Performance of the commodity indices in comparison
Bloomberg Commodity Index
The Bloomberg Commodity index (previously: Dow Jones UBS Commodity index) is based on the economic significance of the commodities. Besides diversification, continuity and market liquidity are considered when selecting and weighting the index components. Currently, the Bloomberg Commodity index tracks 23 commodities from the energy, precious metals, industrial metals, livestock and agriculture segments.
Methodology of the Bloomberg Commodity Factsheet Methodology
- Broad commodities basket of 23 components
- Commodities are selected by economic significance (production), diversification, continuity and market liquidity
- Annual index review and rebalancing
- Monthly roll period
- Single commodity is capped at 15%
- Commodities segment is capped at 33%
- The index was introduced in 1998
Further subindex
Bloomberg Commodity 3 Month Forward
Rogers International Commodity (RICI) Index
The Rogers International Commodity (RICI) index is a broad commodities index that tracks 38 commodities. The index composition is dependent on the global consumption and liquidity of each commodity and is reviewed by the RICI committee.
Methodology of the Rogers International Commodity (RICI) Factsheet Methodology
- Broad commodities basket of 38 components
- Index is rebalanced on a monthly basis
- Index selection and weighting is reviewed on an annual basis by the RICI committee
- Monthly roll period
- The index was introduced in 1998
Optimised Roll Commodity Index
The Optimised Roll Commodity index is based on the Bloomberg Commodity index in terms of composition and target weighting of the various commodities. Thus, commodities are selected and weighted according to their economic significance. Diversification, continuity and market liquidity are also taken into account. As the Bloomberg Commodity index, the Optimised Roll Commodity index tracks 23 commodities from the energy, precious metals, industrial metals, livestock and agriculture segments. The Optimised Roll Commodity index aims to outperform the Bloomberg Commodity index over the long term by optimising roll returns. To achieve this, the maturity of new futures contracts is adjusted monthly based on liquidity criteria.
Methodology of the Optimised Roll Commodity Factsheet Methodology
- Broad commodities basket of 23 components
- Index composition and target weights are identical to the Bloomberg Commodity index
- Commodities are selected by economic significance (production), diversification, continuity and market liquidity
- Annual index review and rebalancing
- Maturity of futures contracts is adjusted monthly to optimise roll return
- Single commodity is capped at 15%
- Commodities segment is capped at 33%
UBS CMCI Index
The UBS CMCI index tracks 28 commodities representing five broad sectors including energy, precious metals, base metals, agriculture and livestock. The index diversifies its futures across the maturity curve and thus offers constant maturities. Therewith, the index tries to minimise the risk of a negative roll yield.
Methodology of the UBS CMCI Factsheet Methodology
- Broad commodities basket of 28 components
- Commodities are selected according to economic indicators like CPI, PPI, and GDP. Secondary factor is their market liquidity
- Largest commodity is capped at 35%, all other commodities are capped at 20%
- Constant maturity to reduce the negative roll yield
- Annual index review
- Index is rebalanced on a monthly basis
- Daily roll period
- The index was introduced in 2007
Commodity ETFs in comparison
The most important factors at a glance
When choosing a commodity ETF one should consider several other factors in addition to the methodology of the underlying index and performance of an ETF. For better comparison, you will find a list of all commodity ETFs with details on size, cost, age, income, domicile and replication method ranked by fund size.
Compare all commodity ETFs in detail
Compare all commodity ETFs in a chart
| Provider ISIN | Fund size in m GBP | TER in % | Use of profits | Fund domicile | Replication method | |
|---|---|---|---|---|---|---|
| Invesco Bloomberg Commodity UCITS ETF AccIE00BD6FTQ80 | 1,810 | 0.19% p.a. | Accumulating | Ireland | Unfunded swap | |
| iShares Diversified Commodity Swap UCITS ETFIE00BDFL4P12 | 1,074 | 0.19% p.a. | Accumulating | Ireland | Unfunded swap | |
| UBS ETF (IE) CMCI Composite SF UCITS ETF (USD) A-accIE00B53H0131 | 1,041 | 0.34% p.a. | Accumulating | Ireland | Swap-based | |
| IE00B4WPHX27 | 336 | 0.30% p.a. | Accumulating | Ireland | Unfunded swap | |
| WisdomTree Broad Commodities UCITS ETFIE00BKY4W127 | 199 | 0.19% p.a. | Accumulating | Ireland | Unfunded swap | |
| WisdomTree Enhanced Commodity UCITS ETF USDIE00BZ1GHD37 | 172 | 0.35% p.a. | Distributing | Ireland | Unfunded swap | |
| WisdomTree Enhanced Commodity UCITS ETF USD AccIE00BYMLZY74 | 121 | 0.35% p.a. | Accumulating | Ireland | Unfunded swap | |
| WisdomTree Broad CommoditiesGB00B15KY989 | 69 | 0.49% p.a. | Accumulating | Jersey | Swap-based | |
| Market Access Rogers International Commodity UCITS ETFLU0249326488 | 51 | 0.60% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| IE00BF0BCP69 | 50 | 0.15% p.a. | Accumulating | Ireland | Unfunded swap | |
| Xtrackers Bloomberg Commodity Swap UCITS ETF 1CLU2278080713 | 4 | 0.19% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| WisdomTree Broad Commodities Longer DatedJE00B24DMC49 | 3 | 0.49% p.a. | Accumulating | Jersey | Swap-based |
Source: justETF.com; As of 19/03/2024
Return comparison of all commodity ETFs
The table shows the returns of all commodity ETFs in comparison. All return figures are including dividends as of month end. Besides the return the reference date on which you conduct the comparison is important. In order to find the best ETFs, you can also perform a chart comparison.
- Cumulative
- Calendar year
| ETF | 1 month in % | 3 months in % | 6 months in % | 1 year in % | 3 years in % | |
|---|---|---|---|---|---|---|
| UBS ETF (IE) CMCI Composite SF UCITS ETF (USD) A-acc | -0.04% | -1.93% | -3.47% | -4.22% | 52.01% | |
| Market Access Rogers International Commodity UCITS ETF | 0.00% | -1.57% | -4.06% | -5.28% | 50.78% | |
| -0.29% | -3.81% | -6.59% | -8.08% | 34.77% | ||
| WisdomTree Broad Commodities UCITS ETF | -0.48% | -3.94% | -6.64% | -8.30% | - | |
| Xtrackers Bloomberg Commodity Swap UCITS ETF 1C | -0.12% | -3.35% | -5.71% | -8.38% | - | |
| -0.12% | -3.33% | -5.76% | -8.52% | 47.12% | ||
| Invesco Bloomberg Commodity UCITS ETF Acc | -0.41% | -3.92% | -6.69% | -8.53% | 32.71% | |
| iShares Diversified Commodity Swap UCITS ETF | -0.39% | -3.94% | -6.74% | -8.57% | 33.33% | |
| WisdomTree Broad Commodities | -0.48% | -4.15% | -6.83% | -8.87% | 31.02% | |
| WisdomTree Broad Commodities Longer Dated | -0.33% | -3.65% | -6.09% | -9.32% | 39.52% | |
| WisdomTree Enhanced Commodity UCITS ETF USD Acc | -0.99% | -4.94% | -7.51% | -9.57% | 32.37% | |
| WisdomTree Enhanced Commodity UCITS ETF USD | -0.99% | -4.94% | -7.54% | -9.62% | 32.42% |
| ETF | 2024 in % | 2023 in % | 2022 in % | 2021 in % | 2020 in % | |
|---|---|---|---|---|---|---|
| Market Access Rogers International Commodity UCITS ETF | 1.67% | -11.22% | 32.54% | 39.78% | -11.84% | |
| UBS ETF (IE) CMCI Composite SF UCITS ETF (USD) A-acc | 1.30% | -7.32% | 30.73% | 35.56% | -1.86% | |
| -0.41% | -12.33% | 33.54% | 34.39% | -0.28% | ||
| WisdomTree Broad Commodities UCITS ETF | -0.48% | -13.32% | 29.17% | - | - | |
| Xtrackers Bloomberg Commodity Swap UCITS ETF 1C | -0.49% | -12.11% | 33.86% | - | - | |
| -1.15% | -13.12% | 29.83% | 28.59% | -6.52% | ||
| iShares Diversified Commodity Swap UCITS ETF | -1.16% | -13.30% | 29.13% | 28.13% | -6.27% | |
| Invesco Bloomberg Commodity UCITS ETF Acc | -1.27% | -13.43% | 28.79% | 28.33% | -6.29% | |
| WisdomTree Broad Commodities Longer Dated | -1.36% | -12.69% | 30.44% | 31.86% | -0.56% | |
| WisdomTree Broad Commodities | -1.65% | -12.96% | 28.40% | 27.01% | -5.40% | |
| WisdomTree Enhanced Commodity UCITS ETF USD | -1.91% | -12.64% | 26.81% | 27.93% | -1.56% | |
| WisdomTree Enhanced Commodity UCITS ETF USD Acc | -2.14% | -12.71% | 26.87% | 27.86% | -1.50% |
Source: justETF.com; As of 29/02/2024; Calculations in GBP including dividends
