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The last year was a rollercoaster ride for the commodities market, marked by historic highs and notable volatility across various assets. Precious metals like gold and silver shined, reaching record levels in multiple currencies. The energy sector delivered mixed results, while the agricultural market experienced a robust bull run, showcasing its resilience and growth potential.
We have highlighted five best-performing commodity ETFs of 2024. These are Invesco DB Agriculture Fund (DBA - Free Report) , Franklin Responsibly Sourced Gold ETF (FGDL - Free Report) , Invesco DB Precious Metals Fund (DBP - Free Report) , abrdn Physical Silver Shares ETF (SIVR - Free Report) and United States Oil Fund (USO - Free Report) .
Precious metals like gold and silver were the biggest winners. Gold logged its best year in nearly 15 years, driven by robust central bank buying, easing of monetary policy by central banks across the globe and safe-haven demand with the rise in geopolitical tensions. Silver had its best year since 2020, outshining yellow metal. Its use in several key industrial applications, such as solar panels and electric vehicles, provides silver an edge over gold (read: Silver ETFs Outshine Gold in 2024: What's in Store for 2025?).
On the other hand, platinum and palladium wrapped up 2024 with a loss. Industrial metals, such as copper and nickel, saw a strong first half on supply concerns and robust demand, driven by increased production of electric vehicles and the AI boom. However, the rally fizzled in the second half, making industrial metal one of the worst-performing asset classes of 2024.
The agricultural sector witnessed a significant bull run, with coffee and cocoa prices achieving record highs. In fact, cocoa was the top-performing commodity of 2024, rising 172%, buoyed by supply fears and market volatility. Poor harvests in Ivory Coast and Ghana (the majority of the crop is grown here) and dwindling global stockpiles drove cocoa prices higher. Meanwhile, coffee prices surged nearly 70%, driven mainly by poor weather in key coffee-producing countries such as Vietnam and Brazil.
The energy sector saw a mixed performance in 2024. Natural gas prices soared 50%, driven by robust global demand, geopolitical tensions and expectations of increased LNG export permits under the incoming Trump administration. On the other hand, oil prices slipped for the second consecutive year, declining 3% in 2024, as supply outstripped demand.
Heading into 2025, global trade tensions and Trump policies will dominate the commodity landscape. A strong dollar and gold's appeal as a safe haven for investors are likely to support precious metals prices, while ample supply could depress oil for the third year.
We have profiled the ETFs below:
Invesco DB Agriculture Fund (DBA - Free Report) – Up 33%
Invesco DB Agriculture Fund tracks the DBIQ Diversified Agriculture Index Excess Return, a rules-based index composed of futures contracts on some of the most liquid and widely traded agricultural commodities. It has key holdings in cocoa and coffee, with 16.8% and 13.1% share, respectively. Invesco DB Agriculture Fund charges 92 bps on an annual basis and trades in a volume of 342,000 shares a day. It has amassed $782.1 million in its asset base and has a Zacks Rank #5 (Strong Sell).
Franklin Responsibly Sourced Gold ETF (FGDL - Free Report) – Up 29.6%
Franklin Responsibly Sourced Gold ETF seeks to reflect the performance of the price of gold bullion. It has AUM of $107.9 million and charges 15 bps in annual fees. Franklin Responsibly Sourced Gold ETF trades in an average daily volume of 25,000 shares and has a Zacks Rank #3 (Hold) (read: After Blockbuster 2024, Gold ETFs to Sparkle Further in 2025).
Invesco DB Precious Metals Fund (DBP - Free Report) – Up 29%
Invesco DB Precious Metals Fund seeks to track changes in the level of the DBIQ Optimum Yield Precious Metals Index Excess Return plus the interest income from the Fund's holdings of primarily US Treasury securities and money market income less the Fund's expenses. It has 8.6% exposure in gold and the rest in silver. Invesco DB Precious Metals Fund has accumulated $153.6 million in its asset base and charges 76 bps in annual fees. It trades in an average daily volume of 22,000 shares and has a Zacks Rank #3.
abrdn Physical Silver Shares ETF tracks the performance of the price of silver, less Trust expenses. It has an AUM of $1.4 billion and trades in a good volume of around 774,000 shares per day on average. SIVR has an expense ratio of 0.30% and a Zacks Rank #3.
United States Oil Fund is the most popular ETF in the oil space, with an AUM of $1 billion and an average daily volume of 3 million shares. It seeks an average daily percentage change in USO’s net asset value for any period of 30 successive valuation days within plus/minus 10% of the average daily percentage change in the price of the Benchmark Oil Futures Contract over the same period. United States Oil Fund has an expense ratio of 0.70% (read: Oil ETFs Gained 4% Last Week: Can the Rally Last?).
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5 Best Commodity ETFs of 2024
The last year was a rollercoaster ride for the commodities market, marked by historic highs and notable volatility across various assets. Precious metals like gold and silver shined, reaching record levels in multiple currencies. The energy sector delivered mixed results, while the agricultural market experienced a robust bull run, showcasing its resilience and growth potential.
We have highlighted five best-performing commodity ETFs of 2024. These are Invesco DB Agriculture Fund (DBA - Free Report) , Franklin Responsibly Sourced Gold ETF (FGDL - Free Report) , Invesco DB Precious Metals Fund (DBP - Free Report) , abrdn Physical Silver Shares ETF (SIVR - Free Report) and United States Oil Fund (USO - Free Report) .
Precious metals like gold and silver were the biggest winners. Gold logged its best year in nearly 15 years, driven by robust central bank buying, easing of monetary policy by central banks across the globe and safe-haven demand with the rise in geopolitical tensions. Silver had its best year since 2020, outshining yellow metal. Its use in several key industrial applications, such as solar panels and electric vehicles, provides silver an edge over gold (read: Silver ETFs Outshine Gold in 2024: What's in Store for 2025?).
On the other hand, platinum and palladium wrapped up 2024 with a loss. Industrial metals, such as copper and nickel, saw a strong first half on supply concerns and robust demand, driven by increased production of electric vehicles and the AI boom. However, the rally fizzled in the second half, making industrial metal one of the worst-performing asset classes of 2024.
The agricultural sector witnessed a significant bull run, with coffee and cocoa prices achieving record highs. In fact, cocoa was the top-performing commodity of 2024, rising 172%, buoyed by supply fears and market volatility. Poor harvests in Ivory Coast and Ghana (the majority of the crop is grown here) and dwindling global stockpiles drove cocoa prices higher. Meanwhile, coffee prices surged nearly 70%, driven mainly by poor weather in key coffee-producing countries such as Vietnam and Brazil.
The energy sector saw a mixed performance in 2024. Natural gas prices soared 50%, driven by robust global demand, geopolitical tensions and expectations of increased LNG export permits under the incoming Trump administration. On the other hand, oil prices slipped for the second consecutive year, declining 3% in 2024, as supply outstripped demand.
Heading into 2025, global trade tensions and Trump policies will dominate the commodity landscape. A strong dollar and gold's appeal as a safe haven for investors are likely to support precious metals prices, while ample supply could depress oil for the third year.
We have profiled the ETFs below:
Invesco DB Agriculture Fund (DBA - Free Report) – Up 33%
Invesco DB Agriculture Fund tracks the DBIQ Diversified Agriculture Index Excess Return, a rules-based index composed of futures contracts on some of the most liquid and widely traded agricultural commodities. It has key holdings in cocoa and coffee, with 16.8% and 13.1% share, respectively. Invesco DB Agriculture Fund charges 92 bps on an annual basis and trades in a volume of 342,000 shares a day. It has amassed $782.1 million in its asset base and has a Zacks Rank #5 (Strong Sell).
Franklin Responsibly Sourced Gold ETF (FGDL - Free Report) – Up 29.6%
Franklin Responsibly Sourced Gold ETF seeks to reflect the performance of the price of gold bullion. It has AUM of $107.9 million and charges 15 bps in annual fees. Franklin Responsibly Sourced Gold ETF trades in an average daily volume of 25,000 shares and has a Zacks Rank #3 (Hold) (read: After Blockbuster 2024, Gold ETFs to Sparkle Further in 2025).
Invesco DB Precious Metals Fund (DBP - Free Report) – Up 29%
Invesco DB Precious Metals Fund seeks to track changes in the level of the DBIQ Optimum Yield Precious Metals Index Excess Return plus the interest income from the Fund's holdings of primarily US Treasury securities and money market income less the Fund's expenses. It has 8.6% exposure in gold and the rest in silver. Invesco DB Precious Metals Fund has accumulated $153.6 million in its asset base and charges 76 bps in annual fees. It trades in an average daily volume of 22,000 shares and has a Zacks Rank #3.
abrdn Physical Silver Shares ETF (SIVR - Free Report) – Up 28.2%
abrdn Physical Silver Shares ETF tracks the performance of the price of silver, less Trust expenses. It has an AUM of $1.4 billion and trades in a good volume of around 774,000 shares per day on average. SIVR has an expense ratio of 0.30% and a Zacks Rank #3.
United States Oil Fund (USO - Free Report) – Up 15.3%
United States Oil Fund is the most popular ETF in the oil space, with an AUM of $1 billion and an average daily volume of 3 million shares. It seeks an average daily percentage change in USO’s net asset value for any period of 30 successive valuation days within plus/minus 10% of the average daily percentage change in the price of the Benchmark Oil Futures Contract over the same period. United States Oil Fund has an expense ratio of 0.70% (read: Oil ETFs Gained 4% Last Week: Can the Rally Last?).