Provides inflation protection and low correlation with traditional financial assets. They are volatile, cyclical and generally don't have good long-term growth. Only appropriate for a small allocation in a portfolio.
Keep allocations modest (e.g., 5%). Managed futures funds like DBMF offer exposure to trend-following across equities, fixed income, currencies, and commodities. DBMF is a managed future fund which follows sort of an index so it's only 'lightly' managed. PDBC provides broad-based commodity futures without K-1 tax forms.
HOLD IN IRA: Commodity dividends are non-qualified and taxed at ordinary income rates.
| Fund | Symbol | Type | Expense Ratio | Market Cap / AUM | Live Price | Index / Benchmark / Notes |
|---|---|---|---|---|---|---|
| iMGP DBi Managed Futures Strategy ETF | DBMF | ETF | 0.85% | $5.4B | $32.91 | SG CTA Index Managed futures CTA replication fund |
| KFA Mount Lucas Index Strategy ETF | KMLM | ETF | 0.90% | $560.1M | $31.08 | KFA MLM Index Futures on 11 commodities, 6 currencies, 5 bond markets |
| Invesco Optimum Yield Diversified Commodities No K-1 ETF | PDBC | ETF | 0.74% | $7.8B | $19.44 | DBIQ Opt Yield Diversified Comm Index Broad 14 commodity futures; No K-1 tax form |
| Direxion Auspice Broad Commodity Strategy ETF | COM | ETF | 0.72% | $209.0M | $34.85 | Auspice Broad Commodity Index Long/flat momentum tactical strategy |
| abrdn Bloomberg Commodity 3 Month Forward ETF | BCD | ETF | 0.30% | $439.8M | $38.47 | Bloomberg Commodity Index 3M Forward Low cost forward curve fund |
| iShares S&P GSCI Commodity-Indexed Trust | GSG | ETF | 0.75% | $1.0B | $35.73 | S&P GSCI® Total Return Index Energy-heavy futures basket |
| iShares Bloomberg Roll Select Commodity ETN | DJP | ETF | 0.70% | $1.0B | $51.55 | Bloomberg Commodity Index Total Return Exchange Traded Note structure |