Commodity ETF Comparison: Best Commodity ETFs 2026 at a Glance

A commodity ETF comparison shows which broadly diversified funds are suitable for a portfolio, how they map the commodity market via futures contracts, and what investors should pay attention to regarding costs, fund volume, and rolling strategy. Twelve broadly diversified funds are available, with a total cost ratio between 0.12% and 0.60% per year. The Bloomberg Commodity Index serves as the most important basis and pools 23 individual commodities in one basket.

What is a Commodity ETF?

Commodity ETFs are exchange-traded funds that allow investors to invest in commodities without physically storing oil, wheat, or metals. They typically map price developments via futures contracts. A commodity index bundles many individual values together.

How does price mapping work?

Commodity ETFs don't buy barrels of oil. They hold futures, which are contracts for future deliveries. When a contract expires, it is rolled over to a new one. This rolling process determines a large part of the value development and explains why two funds with the same reference to an index can still deliver different results.

Commodity ETFs, ETCs, and equity funds

In addition to broadly diversified funds, there are ETCs (Exchange Traded Commodities) that map individual commodities such as gold, as well as equity ETFs of companies in the industry. Those who wish to invest physically usually turn to gold or silver ETCs.

What commodities are in a commodity ETF?

A broad commodity index distributes weight across multiple sectors. This diversification is the core of portfolio diversification.

Energy

Energy includes crude oil (Brent and WTI), natural gas, heating oil, and gasoline. This sector reacts strongly to geopolitical events and is often the most volatile part of the commodity market. Natural gas and heating oil can fluctuate double-digit percentages within weeks if supply or weather conditions change.

Precious metals

Gold and silver are considered safe havens. Gold is additionally supported by central bank purchases, which reached over 1,000 tonnes per year combined in 2024 and 2025. Platinum and palladium complement the precious metals.

Industrial metals

Aluminum, copper, nickel, and zinc are central industrial metals. Their prices are closely tied to industrial manufacturing and global supply chains. Aluminum and nickel are particularly sensitive to energy prices, while zinc is heavily dependent on construction activity.

Agricultural commodities and livestock

Grains such as wheat and corn, along with soybeans, sugar, and coffee, make up agricultural commodities. Soybeans are among the most heavily traded contracts worldwide. Livestock includes live cattle and pork. For live cattle, weather and feed costs directly affect price development.

The most important commodity indices compared

Six commodity indices are investable via exchange-traded funds. Three dominate the market. Their composition determines returns and risk.

Bloomberg Commodity Index

The Bloomberg Commodity Index was launched in 1998 and covers 23 commodities. It weights one third by production volume and two thirds by liquidity. No single value may exceed 15%, no sector more than 33%. Adjustments are made annually in January. Five funds track this index.

Rogers International Commodity Index

The Rogers International Commodity Index (RICI) also dates from 1998 and includes 38 commodities. This offers the broadest coverage. Selection is based on global consumption and liquidity, reviewed by its own committee. One fund tracks the RICI.

UBS CMCI Index

The UBS CMCI Index (2007, 28 commodities) distributes its futures across the entire maturity curve. This reduces the risk of negative roll returns. The largest weighting is 35%, with other values at a maximum of 20%. Adjustments are made annually in August.

Differences in commodity indices

The differences lie in breadth and rolling methodology. The Bloomberg Commodity Index relies on capping, the RICI on scope, and the UBS CMCI on constant maturities. This composition directly reflects in performance. When comparing the performance of two indices over several years, you see return differences of several percentage points due to rolling methodology alone.

Commodity ETFs compared: Facts and figures

Twelve broadly diversified commodity ETFs are traded on exchanges. The total volume of these funds is approximately 12.44 billion euros, with the four largest funds accounting for nearly half of that alone.

Largest commodity ETFs by fund volume

High fund volume reduces the risk of fund closure and improves tradability:

• iShares Diversified Commodity Swap UCITS ETF (IE00BDFL4P12): approximately 1,986 million euros, TER 0.19%
• iShares Bloomberg Roll Select Commodity Swap UCITS ETF (IE00BZ1NCS44): approximately 1,470 million euros, TER 0.28%
• UBS CMCI Composite SF UCITS ETF (IE00B53H0131): approximately 1,215 million euros, TER 0.34%
• L&G Multi-Strategy Enhanced Commodities UCITS ETF (IE00BFXR6159): approximately 1,189 million euros, TER 0.30%

Cheapest commodity ETFs by total cost ratio

The total cost ratio ranges from 0.12% to 0.60% per year. Low-cost funds improve net returns over time:

• Xtrackers Bloomberg Commodity Swap UCITS ETF 1C: 0.12% p.a.
• L&G All Commodities UCITS ETF: 0.15% p.a.
• iShares Diversified Commodity Swap UCITS ETF: 0.19% p.a.

Performance overview

The performance of broadly diversified commodity ETFs has been strong recently. Over twelve months, the best funds reached up to +36.83%, over five years around +70.78%. In 2026 to date, returns stand at approximately +28.64%.

However, these figures fluctuate greatly and cannot be extrapolated. In 2015 and 2018, the same commodity ETFs delivered double-digit losses, showing how cyclical the commodity market is.

Commodity ETF comparison of individual products

Four funds appear particularly frequently in commodity ETF comparisons. They show how different approaches can be.

iShares Diversified Commodity Swap UCITS ETF

The iShares Diversified Commodity Swap UCITS ETF is the largest broadly diversified fund at approximately 1,986 million euros. It tracks an optimized Bloomberg Commodity Index and reinvests income. The low total cost ratio of 0.19% makes it attractive to many investors.

Invesco Bloomberg Commodity Ex-Agriculture UCITS ETF Acc

This fund excludes agricultural commodities and livestock. It focuses on energy, precious metals, and industrial metals. Those with ethical concerns about food speculation will find an alternative here with exposure to classical industrial and energy values.

L&G All Commodities UCITS ETF

The L&G All Commodities UCITS ETF (A2DQ7M) follows the Bloomberg Commodity Index and scores with a total cost ratio of 0.15%. This makes it one of the cheapest broadly diversified funds on the market.

UBS CMCI Composite SF UCITS ETF

The CMCI Composite SF UCITS ETF implements the UBS CMCI Index. The SF ETF distributes futures across different maturities, reducing the contango problem. This very construction makes the SF ETF interesting for investors who want to dampen negative roll returns over the long term. Fund volume stands at approximately 1,215 million euros.

How can I invest in commodities?

Access to the commodity market for retail investors almost always happens through the exchange. Physical purchase of oil or grain is not an option. There are three practical ways to invest.

Broadly diversified commodity ETFs

A single purchase covers many commodities. This is the simplest way to gain exposure to commodity markets. The fund handles the rolling of futures contracts.

ETCs on individual commodities

ETCs provide targeted access to gold, silver, or individual industrial metals. Physically backed gold ETCs are among the largest products on the market and are often used for hedging.

Buy commodity ETF via broker or savings plan

To buy a commodity ETF, you need a depot account at a bank or online broker. Many providers offer suitable funds. An ETF savings plan makes entry predictable because it automatically invests in fixed installments.

Investing in commodity ETFs with savings plans

Commodity ETFs can be invested in once or regularly via installments. ETF savings plans spread entry over time and smooth volatile commodity market prices.

Advantages of an ETF savings plan

An ETF savings plan reduces the risk of poor timing. With an online broker, many ETF savings plans are free or inexpensive, often starting from 25 euros per month. This way small amounts regularly flow into the portfolio, and price development is averaged across many purchase points.

Reinvestment instead of distributions

All major broadly diversified commodity ETFs reinvest income. Distributions are typically not available here; returns are reinvested. This increases the compound interest effect in the portfolio. Those who save via ETF savings plans benefit particularly from this effect, as each installment immediately begins earning returns.

Which is the best commodity ETF?

There is no single best fund. The best choice depends on costs, composition, and your own strategy. A meaningful commodity ETF comparison examines multiple factors together.

Selection criteria

• Fund volume: at least 100 million euros to avoid fund closures
• Total cost ratio: low TER improves returns over the long term
• Rolling strategy: optimized approaches like UBS CMCI reduce negative roll returns
• Index: prefer broadly diversified commodity indices
• Liquidity: high trading volumes ensure tight spreads

Best commodity ETFs 2026 by focus

Those seeking the best commodity ETFs 2026 distinguish by objective. For maximum breadth, a fund on the RICI with 38 commodities is suitable. For low costs, funds with a TER from 0.12% make sense. For rolling issues, a product with constant maturities is recommended. Investors should never evaluate these factors in isolation, but always in interplay.

Are commodity ETFs worthwhile?

Commodity ETFs are not a core investment but a supplement. They complement stocks and bonds as a satellite in the portfolio.

Advantages of commodity ETFs

The advantages lie in diversification. Commodities historically show a negative correlation to stocks and buffer setbacks. As inflation protection, they often gain value when inflation rises, thus serving as a hedge against purchasing power loss.

A supply chain investment via broad commodity baskets participates in global shifts in supply and demand. Particularly during periods of disrupted supply chains, such supply chain investment has proven to be a stabilizing component historically.

Risks and limitations

The risks are substantial. Commodity markets fluctuate sharply, with annual losses of 20% and more in weak periods. The greatest risk lies in roll returns and synthetic structures with counterparty risk. For a pure buy-and-hold strategy, commodity ETFs are only partially suitable.

Understanding contango and backwardation

In contango, future delivery prices exceed current spot prices. This creates negative roll returns and reduces returns. In backwardation, it's the opposite: future prices are below spot prices, generating positive roll returns. This mechanism shapes value development more strongly than short-term price movements in the commodity market.

Integrating commodity ETFs correctly into your portfolio

A clear rule helps with weighting. Commodities should complement the remaining portfolio, not dominate it.

The right weighting

As a rule of thumb, commodity ETFs should comprise a maximum of 5 to 10% of the total portfolio. This satellite position provides diversification without blowing up overall risk.

A comparison before buying

Before any investment comes comparison. Check composition, fund volume, costs, and rolling strategy side by side. This way you find the fund that matches your portfolio and risk tolerance.

Frequently asked questions about commodity ETF comparison

Which commodity ETF is recommended?

A blanket recommendation is irresponsible. Broadly diversified funds on the Bloomberg Commodity Index or RICI provide the greatest spread. The specific choice depends on costs and strategy.

Which commodities should one invest in 2026?

Rather than betting on individual values, broad commodity ETFs diversify across energy, precious metals, industrial metals, and agricultural commodities. This reduces the risk of individual mistakes.

Are physical commodity ETFs possible?

For gold and silver yes, typically via physically backed ETCs. Broad commodity baskets cannot be replicated physically, so they use futures contracts.

Making informed decisions on the exchange

A careful look at index, costs, and rolling strategy protects against costly mistakes. Commodity ETFs are a powerful tool for diversification but require understanding of futures and active monitoring. Those who know these fundamentals make informed decisions on the exchange and strategically use the commodity market as a complement to their own portfolio.