What Are the Most Popular Commodity ETFs?

The introduction of the first commodity ETF cracked open an asset class that had once been off limits to a number of investors. Commodity investing was reserved only to those with complex futures trading accounts and who had the time and ability to actively trade. Now, the average Joe can add something like physical gold exposure to their portfolio with relative ease. Commodity ETFs have quickly become the most popular way to make a play on this volatile asset class, as investors have been relatively quick to adopt these securities [for more commodity ETF analysis subscribe to our free newsletter].

Below, we outline the ten most popular commodity ETFs for investors looking to hop in on the latest trend in the commodity space.

  1. United States Natural Gas Fund (UNG): UNG is one of the most infamous funds in the world, as it has long suffered due to the nasty effects of contango and a weak environment for NG. The fund trades more than 12 million times each day and has just over $1.1 billion in total assets. Natural gas futures are among the most volatile in the world, giving UNG its mass appeal, as active traders often seek out the big daily swings that this fund has to offer.
  2. iShares Silver Trust (SLV): For the time being, this physically-backed silver fund takes second place, though it often battles it out with the third place contender. SLV trades just over 10 million times each day and is nearing the $10 billion mark in total assets. Silver is another one of the more volatile commodity options out there, so it is no surprise to see this fund fall near the top of the list, as it is used as both a trading instrument and a long-term hold.
  3. SPDR Gold Trust (GLD): By far the largest commodity ETF in the world, GLD has just under $70 billion in assets and trades just over 9 million times on a daily basis. The fund’s massive popularity has made it the standard benchmark for gold investing as big name investors like George Soros and John Paulson have made large allocations to the ETF [see also Three Reasons Why Gold Is Overvalued].
  4. United States Oil Fund (USO): Tracking front-month WTI crude contracts, USO has made a real name for itself, exchanging hands 8.5 million times on a daily basis. The fund has been especially active in recent weeks as the price of oil has remained volatile throughout the majority of summer.
  5. COMEX Gold Trust (IAU): IAU also tracks physical gold, but instead represents 1/100th the price  of an ounce of gold where GLD is representative of 1/10th ounce. IAU’s main appeal comes with its expense ratio of just 25 basis points compared to GLD’s 40. The fund currently trades 4.7 million shares each day and is coming very close to $10 billion in total assets.
  6. DB Commodity Index Tracking Fund (DBC): This broad-based fund aims to represent the entire commodity industry, as it invests in 14 of the most heavily traded commodities in the world. DBC has an average daily volume of 2.3 million and has just over $6 billion in assets.
  7. Ultra DJ-UBS Crude Oil (UCO): This fund is a leveraged version of USO, offering a 200% return on WTI crude contracts. Its leverage makes it too dangerous for a long term play, but its average volume of 2.2 million suggests that active traders enjoy dabbling in UCO [see also 25 Ways To Invest In Crude Oil].
  8. UltraShort DJ-UBS Crude Oil (SCO): This fund is simply the -200% version of USO, offering a great way to make a bet against crude oil. SCO currently trades 1.3 million shares each day.
  9. DB Agriculture Fund (DBA): DBA is another staple product for both traders and long term investors. The fund currently consists of 11 futures contracts, including corn, soybeans, sugar, live cattle, and more. DBA has more than $2 billion in total assets and trades approximately 1.2 million times each day.
  10. Ultra Silver (AGQ): This product aims to return 200% of the daily movements of silver, and it has seen some incredible performances. During a few month period early last year, this fund was able to jump more than 550% before crashing back to earth. AGQ currently trades 1.2 million shares each day.

Don’t forget to subscribe to our free daily commodity investing newsletter and follow us on Twitter @CommodityHQ.

Disclosure: No positions at time of writing.

This entry was posted in Actionable Ideas, Agriculture, Asset Allocation, Commodity ETFs, Energy, Gold, Natural Gas, Precious Metals, Silver, WTI and tagged , , , , , , , , , . Bookmark the permalink.

Commodity HQ is not an investment advisor, and any content published by Commodity HQ does not constitute individual investment advice. The opinions offered herein are not personalized recommendations to buy, sell or hold securities or investment assets. Read the full disclaimer here.

34 Responses to “What Are the Most Popular Commodity ETFs?”

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  8. [...] this day and age). That being said, it should come as no surprise to see this fund maintain such a high popularity given that it tracks front month crude futures. USO trades just over 8.7 million times per day and [...]

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  13. [...] Commodity ETF investing has rapidly grown in popularity in recent years, as these securities have democratized an asset class that was once out of reach for a vast number of investors. Now, you can add exposure to physical gold or soybean futures with a single ticker. The majority of these products were designed with traders in mind, but there are also a fair amount of commodity funds that were designed for long-term investors. The problem is, it can be difficult to tell which funds are appropriate for you and your investment strategy. Below, we outline five commodity ETFs that can be useful in certain environments, but should be avoided by long-term investors [for more commodity ETF news subscribe to our free newsletter]. [...]

  14. [...] Commodity ETF investing has rapidly grown in popularity in recent years, as these securities have democratized an asset class that was once out of reach for a vast number of investors. Now, you can add exposure to physical gold or soybean futures with a single ticker. The majority of these products were designed with traders in mind, but there are also a fair amount of commodity funds that were designed for long-term investors. The problem is, it can be difficult to tell which funds are appropriate for you and your investment strategy. Below, we outline five commodity ETFs that can be useful in certain environments, but should be avoided by long-term investors [for more commodity ETF news subscribe to our free newsletter]. [...]

  15. [...] Commodity ETF investing has rapidly grown in popularity in recent years, as these securities have democratized an asset class that was once out of reach for a vast number of investors. Now, you can add exposure to physical gold or soybean futures with a single ticker. The majority of these products were designed with traders in mind, but there are also a fair amount of commodity funds that were designed for long-term investors. The problem is, it can be difficult to tell which funds are appropriate for you and your investment strategy. Below, we outline five commodity ETFs that can be useful in certain environments, but should be avoided by long-term investors [for more commodity ETF news subscribe to our free newsletter]. [...]

  16. [...] Commodity ETFs give investors the chance to play the commodities market like they were never able to before, now even part time investors are able to get a piece of these quickly evolving markets. For some, this access was not diverse enough, and demanded leveraged ETFs as an advanced way of investing, where the fund will work to double or some times even triple the outcome of an index. These funds are not recommended for the part time or risk averse investor, but as one of the largest growing sectors in commodity investing, it seems clear some are ready to take on the leveraged risk [for more commodity ETF news and analysis subscribe to our free newsletter]. [...]

  17. [...] Commodity ETFs give investors the chance to play the commodities market like they were never able to before, now even part time investors are able to get a piece of these quickly evolving markets. For some, this access was not diverse enough, and demanded leveraged ETFs as an advanced way of investing, where the fund will work to double or some times even triple the outcome of an index. These funds are not recommended for the part time or risk averse investor, but as one of the largest growing sectors in commodity investing, it seems clear some are ready to take on the leveraged risk [for more commodity ETF news and analysis subscribe to our free newsletter]. [...]

  18. [...] Commodity ETFs give investors the chance to play the commodities market like they were never able to before. Now even part time investors are able to get a piece of these quickly evolving markets. For some, this access was not diverse enough, and demanded leveraged ETFs as an advanced way of investing, where the fund will work to double or some times even triple the outcome of an index. These funds are not recommended for the part time or risk averse investor, but as one of the largest growing sectors in commodity investing, it seems clear some are ready to take on the leveraged risk. [...]

  19. [...] Commodity ETFs give investors the chance to play the commodities market like they were never able to before, now even part time investors are able to get a piece of these quickly evolving markets. For some, this access was not diverse enough, and demanded leveraged ETFs as an advanced way of investing, where the fund will work to double or some times even triple the outcome of an index. These funds are not recommended for the part time or risk averse investor, but as one of the largest growing sectors in commodity investing, it seems clear some are ready to take on the leveraged risk [for more commodity ETF news and analysis subscribe to our free newsletter]. [...]

  20. [...] Eck’s NLR is by far the largest and most popular option for investors looking to gain access to this intriguing alternative energy segment. Since [...]

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  24. [...] a single ticker. As the years have gone on, a number of these products have grown to be some of the most widely-used financial instruments for their respective commodity. One advantage to ETFs, however, is that [...]

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  26. [...] single ticker. As the years have gone on, a number of these products have grown to be some of the most widely-used financial instruments for their respective commodity. One advantage to ETFs, however, is that [...]

  27. [...] average investor. With roughly 150 options, investors can now gain cheap and easy access to nearly every corner of the commodity universe. And while there are a number of ETFs that offer access to a single commodity, some investors [...]

  28. [...] thick and thin a select group of funds have broken away from the rest, as they have maintained their popularity. And just like any other business, these funds need to make money to stay open (and to hopefully [...]

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  32. [...] to flourish, issuers have been trying to find new ways to segment their favorite asset classes. Commodity ETFs in particular have come a long way from the first-generation funds that offered exposure to [...]

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  34. [...] to flourish, issuers have been trying to find new ways to segment their favorite asset classes. Commodity ETFs in particular have come a long way from the first-generation funds that offered exposure to [...]

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