Commodity investments are considered too risky for many. The commodity market is strongly influenced by supply and demand and is extremely volatile. Nevertheless, it can make a lot of sense to invest in commodities. They help the portfolio to achieve a higher degree of diversification and can cushion price fluctuations and falls in share prices, especially in turbulent and uncertain times.
Investments in the price development of commodities are mostly made via futures markets. Commodity indices include a mix of them from different commodities. Commodity ETFs offer private investors a safe way to participate in the commodity market and are a long proven liquid investment. In addition, they can also be used well in savings plans.
Various commodity indices are available for investing in commodities with ETFs. They are all broadly diversified, so there is a suitable ETF for almost everyone. In the following, we will take a closer look at some of the most important commodity ETFs.
Lyxor Commodities Refinitiv/CoreCommodity CRB Index – the best commodity ETF by fund return
Determined by the 1-year fund return, the Lyxor Commodities Refinitiv/CoreCommodity CRB Index is currently the best performing commodity ETF. This is a very broad-based commodity index. It contains a total of 19 different commodities, which are divided into four equally weighted groups.
The commodity ETF achieved a year-on-year performance, including distribution, of 43.75 percent. In 2021 alone, the ETF has so far achieved a performance of 38.08 percent.
The Lyxor Commodities Refinitiv/CoreCommodity CRB Index is also available as a savings plan offering.
The Second Best Commodity ETF by Fund Return – Market Access Rogers International Commodity UCITS ETF
Looking at the fund return within the last year since the same month last year, the Market Access Rogers International Commodity UCITS ETF is the second best performing commodity ETF at 42.41 percent. The Market Access Rogers International Commodity UCITS ETF is also a broad commodity index. Its composition is based on global consumption and the global liquidity of the individual commodities.
iShares Diversified Commodity Swap UCITS ETF- the largest commodity ETF by fund volume
Based on fund volume, the Bloomberg Commodity Index is currently the largest commodity ETF. It provides access to futures from various commodity sectors. Thus, a total of 27 commodities from the agricultural commodities, precious metals, energy, industrial metals and livestock sectors are included in the iShares Diversified Commodity Swap UCITS ETF.
Within one year since the same month last year, the ETF achieved a performance including distribution of 36.29 percent. The iShares Diversified Commodity Swap UCITS ETF can also be used in savings plans.
The commodity ETF has a total fund volume of 1699 million euros.
Second highest fund volume – UBS ETF (IE) CMCI Composite SF UCITS ETF
The UBS ETF (IE) CMCI Composite SF UCITS commodity ETF currently has the second highest fund volume at 1050 million euros. It provides access to 29 different commodities in agricultural commodities, precious metals, energy, industrial metals, and livestock.
