Are you interested in commodities, or do you believe a commodity ETF would be a good fit for your portfolio? Investing in ETFs is a great way to increase the diversification of your portfolio. On our platform you can find a wide selection of commodity ETFs.
Not every commodity ETF is the same. ETFs differ from each other in several ways, such as fund size, price, risk and underlying value. For example, they may track different companies or indices. Also, some may pay dividends and others may not.
These are the five most traded commodity ETFs by our clients in 2021.
|WISDOMTREE BROAD COMMODITIES ETC||DE000A0KRKC6|
|L&G LONGER DATED ALL COMMODITIES UCITS ETF USD ACC||IE00B4WPHX27|
|WISDOMTREE COMMODITY SECURITIES ETC||GB00B15KY765|
|INVESCO BLOOMBERG COMMODITY UCITS ETF USD||IE00BD6FTQ80|
|ETFS EUR DAILY HEDGED FORWARD ALL COMMODITY||JE00B460QR00|
WISDOMTREE BROAD COMMODITIES ETC
L&G LONGER DATED ALL COMMODITIES UCITS ETF USD ACC
WISDOMTREE COMMODITY SECURITIES ETC
INVESCO BLOOMBERG COMMODITY UCITS ETF USD
ETFS EUR DAILY HEDGED FORWARD ALL COMMODITY
The information on this page is intended for informational purposes only and does not provide any recommendations or financial advice.
Exchange-traded funds (ETFs) make investing easier because they are the perfect product to quickly build a diversified portfolio. We offer a wide range of ETFs trading on 19 major exchanges. Whether you want to invest in local ETFs or global ETFs, investing opportunities are abundant. We even offer a Core Selection of 200 ETFs for which commission costs are on the house. Currency, external product and spread costs may apply. See the ETF Core Selection, conditions and Fair Use Policy here. Open a free account and discover the possibilities.
With our low fees and wide trading possibilities, we make investing in ETFs accessible to everyone. See a complete overview of our unprecedented rates here.Open an account
fees per trade
*Currency, connectivity, or external product and spread costs may apply. Find out more on our fees page. Handling fees are not applicable to the ETF Core Selection. The ETF Core Selection is subject to a Fair Use Policy.
Vanguard S&P 500 UCITS ETF USD
Vanguard FTSE All-World UCITS ETF USD Dis
iShares Core MSCI World UCITS ETF USD (Acc)
ETFs, also known as trackers, are funds that follow the performance of an index, commodity, bond or composition of products. Unlike some other funds, ETFs are bought and sold on a stock exchange. Would you like to learn more about ETFs? Read our ETF article for all you need to know.Open an account
According to the ‘stock market definition’, a commodity is the raw material used to create products or goods. To be tradable on an exchange, a commodity must be exchangeable for another commodity of the same type or grade.
Another important characteristic of commodities is that the supply is limited. This means that the price is determined by the supply and demand of it. For example, if oil is very scarce, the price will rise. However, when more oil becomes available, oil can be purchased at a lower price.
Trading commodities has a different dynamic compared to trading shares of companies. A company may go bankrupt, for example, but commodities almost always remain available to some extent.
From copper and platinum, to cotton, soy, coffee, wheat, cocoa and oil: they can all be found in commodity ETFs.
Investing in commodity ETFs means you are investing in the foundation of the global economy. Without commodities like oil, iron ore or wheat, transportation, construction and (animal) food production are virtually impossible in the world as we know it today.
The specialised commodity trade really took off with the industrial revolution. Worldwide, there were places where oil, grain, coffee or other commodities were offered. Eventually, commodity trading was digitised, so now trade is lightning fast and continuous. Before a shipment of commodities gets to the manufacturer for further processing, it may have changed hands several times.
With ETFs, you almost always invest in a fund that invests in derivatives on commodities. So, they don’t include the physical commodity, except for some gold ETFs that actually have gold bars in a vault. Ultimately, even ETFs that invest in derivatives are all about the value of physical commodities. The scarcity of commodities means that commodity prices are driven by supply and demand and thus determine the price of the ETF.
Commodity trading is often complex; any price fluctuations are difficult to predict. However, with a commodity ETF, you often invest in multiple derivatives or commodity-related companies at the same time. That means you spread the risk. Because of the spread, fluctuations in individual commodity prices have less impact on the price of the overall commodity ETF. Therefore, investments in commodity ETFs are often seen as a more stable investment.
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Investing involves risks. You can lose (a part of) your invested funds. We advise you to only invest in financial products which match your knowledge and experience. This is not investment advice.
We want to empower people to become the best investors they can be. By offering a universe of possibilities and choices on our user-friendly platform, we are removing barriers to make investing accessible to everyone: beginners or experts. You get access to a wide variety of products on more than 50 global exchanges to have the freedom to invest the way you like. In our world, you also get great value for money. So, without compromising an inch on the quality, security and range of our investment services, we offer incredibly low fees. Prioritising your needs has helped us become the leading European online broker. Our 2+ million clients and 90+ international awards are proof of our success.
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If you activate your DEGIRO investment account before the 1st of March 2023, DEGIRO will reimburse your transaction fees up to €100. The following conditions apply to this offer:
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