Invesco ETFs
Explore our lineup of ETFs and see how they can be cost-effective, tax-efficient tools for maximizing your investments and meeting your portfolio objectives.
Invesco ETFS & ETPS Commodities
Commodity ETPs can play several roles in a portfolio, offering diversification, inflation hedging, and growth potential.
Why partner with us Convenience, ease of access, and transparency
Investing in commodities comes with potential benefits that investors should consider, especially during periods of inflation. Invest in single commodities or a broad basket with active or indexed strategies from a leading provider of ETPs.
Portfolio diversification
Incorporating commodities into a traditional investment portfolio of stocks and bonds may improve risk-adjusted returns.1
Potential inflation protection
Having an allocation to commodities can offer an efficient hedge when inflation is elevated because they typically increase in price.2
Geopolitical hedge
Commodities respond directly to geopolitical shocks, supply disruptions, and macro uncertainty, acting as a real‑asset buffer when global risks elevate.
Catalysts shaping the commodity landscape
Ongoing shifts in geopolitics and global supply chains continue to influence conditions across energy, metals, and other commodity segments. Invesco offers solutions that can help investors navigate an environment shaped by broad structural change and evolving market forces.
What we offer Commodity ETP Suite
| Ticker | Fund name | Total expense ratio | Net expense ratio | How to invest |
|---|---|---|---|---|
| PDBC | Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF | 0.67% | 0.59%* | Invest in PDBC Fact sheet |
| PDBA | Invesco Agriculture Commodity Strategy No K-1 ETF | 0.74% | 0.59%* | Invest in PDBA Fact sheet |
| EVMT | Invesco Electric Vehicle Metals Commodity Strategy No K-1 ETF | 0.73% | 0.59%* | Invest in EVMT Fact sheet |
| DBC | Invesco DB Commodity Index Tracking Fund | 0.89% | 0.84% | Invest in DBC Fact sheet |
| DBA | Invesco DB Agriculture Fund | 0.93% | 0.88% | Invest in DBA Fact sheet |
| DBB | Invesco DB Base Metals Fund | 0.79% | 0.75% | Invest in DBB Fact sheet |
| DBE | Invesco DB Energy Fund | 0.80% | 0.75% | Invest in DBE Fact sheet |
| DBO | Invesco DB Oil Fund | 0.81% | 0.75% | Invest in DBO Fact sheet |
| DBP | Invesco DB Precious Metals Fund | 0.79% | 0.73% | Invest in DBP Fact sheet |
Frequently asked questions
Commodities can be attractive for investors seeking diversification,1 inflation protection,2 or a geopolitical hedge.
- Portfolio diversification: Historically, commodity returns have had a low correlation to equities and a negative correlation to fixed income, which may help improve the risk-adjusted returns of a diversified portfolio.3
- Inflation Protection: Although inflation has been easing year-over-year, the US Consumer Price Index (CPI) remains stubbornly above the US Federal Reserve’s (Fed) 2% target. Commodities have historically been the most efficient hedge for inflation and have returned positively 72% of the time when CPI was above 2%.4
- Geopolitical hedge: Commodities respond directly to real‑world disruptions—such as conflicts, sanctions, or supply‑chain disruptions, that can tighten the availability of energy, metals, and agricultural products. In periods of elevated geopolitical tensions, commodities may serve as an effective real‑asset buffer.
In addition to the benefits of commodities in general, investing through ETFs can also provide increased benefits like convenience, ease of access, and transparency.
- Convenience: While some commodity ETFs and ETPs do hold physical commodities, most are futures- and derivatives-based, allowing investors to participate in the returns without having to worry about taking physical delivery of the commodity. The futures contracts are replaced by a later-dated contract prior to expiry in a process known as "rolling" futures contracts.
- Ease of Access: Like stocks, commodity ETFs and ETPs can be traded on a stock exchange anytime during market hours. This aspect can offer greater flexibility when compared to mutual funds.
- Transparency: ETFs and ETPs may provide increased transparency into their portfolio holdings compared to mutual funds. Most ETFs publicly disclose their holdings daily.
As measured by inflation beta5 from 1998 to 2025, commodities are historically the most efficient hedge for inflation of any major asset class, even when compared to common inflation-fighting instruments, like Treasury Inflation-Protected Securities (TIPS),6 real estate investments trusts (REITs),7 and gold.8 This is because commodities are raw materials used as inputs in housing, transportation, and food, all components of the CPI. In addition, inflation shocks are usually the byproduct of stronger-than-expected demand and/or supply uncertainty, all of which may boost the price of goods.
- Futures contracts trade on exchanges, representing an agreement between the buyer and seller whereby the price is fixed, and the buyer agrees to take delivery of the underlying asset at a specified date in the future. Futures-based commodity ETFs and ETPs use derivatives, including futures and swaps, to deliver commodity exposure.
- In the commodity arena, spot prices typically don’t match futures prices, creating situations of backwardation and contango. Spot prices are the current costs for a particular commodity for immediate delivery, while futures prices reflect delivery of the commodity at a particular future date. Backwardation occurs when the spot price of a commodity is higher than futures prices, signaling an expected shortage of supplies; consumers are willing to pay more to receive the product now in preparation for the shortage. On the flip side, contango describes the scenario in which a commodity’s futures contracts are priced higher than what’s seen in the spot market, signaling an expected surplus; consumers aren’t willing to pay more right now, given the abundance of supplies.
- Most of the first commodities ETFs and ETPs that were launched invest in the front-month contract. Given commodities are physical assets, to avoid physical delivery, funds will have to frequently sell out of expiring contracts and move to the following futures contract. During contango markets, this repeated buying and selling of positions can expose funds to high roll costs, considering they would have to sell a less expensive, expiring contract and buy a more expensive, later-dated contract.
The optimum yield methodology is a key feature of Invesco’s commodity suite. This approach seeks to maximize the roll yield during backwardation markets and minimize roll costs during contango markets, reducing the burden for investors to monitor and understand changing futures curve shapes. During backwardation markets, rolling further out the curve can potentially allow the funds to realize roll yield as the contracts appreciate as they move toward expiry.
Given the global reach of commodities, commodity prices have many drivers. However, some of the key influencing factors include:
- Global Economic Health: The health of the global economy can directly impact the supply and demand of commodities, influencing prices. In particular, developments in China and the US often have an outsized influence since they are the world’s two largest global economies by gross domestic product (GDP), which measures the total value of a country's finished goods and services.
- Green Transition and Climate Volatility: Contrary to popular belief, the Energy Transition/Decarbonization trend is supportive of commodity prices given metals, like copper, aluminum, zinc, and nickel, play a significant role in the world’s path to net zero, yet efforts to reduce carbon emissions are significantly constraining supplies. This combination of growing demand and tightening supply could potentially create sustained global deficits in the metals sector for years — possibly decades — to come.
The growing application of environmental, social, and governance (ESG) and (greenification) investment solutions has also led to significant underinvestment in fossil fuels, such as oil and gas, stunting supply growth while global demand continues to climb. Extreme weather events may continue to upend supplies in the agricultural sector. Furthermore, there may be increased demand for agricultural commodities to be used as “energy crops” for ethanol and biodiesel.
- Geopolitics: Rising geopolitical tension, especially between significant players in this market, can lead to heightened uncertainty and volatility for prices, as we saw play out following Russia’s invasion of Ukraine. Tensions between the US and China have also been rising, which could potentially rewrite existing global trade routes.
