8 Best Commodity ETFs to Buy Now

These commodity ETFs offer investors exposure to the diverse asset class, which is a helpful hedge against inflation.

wheat field on sunny day
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Investors worried about sticky inflation should take a closer look at commodity ETFs as hedges against rising prices. 


History shows that commodities have proven resilient amid persistently rising prices. From energy sources to agricultural products to metals, commodities of many different flavors have naturally seen their values rise amid inflationary pressures. 

Inflation is cooling, but still remains high

True, the latest consumer price index (CPI) reading showed inflation continues to ease, but investors should remain on guard. "We can safely say that we are past peak inflation, but it is too early to call victory against inflation," says Gargi Chaudhuri, head of iShares Investment Strategy, Americas at BlackRock. "Investors should continue to think about hedging against inflation and consider how higher interest rates for longer could affect their portfolios."

Hard assets like commodities and commodity ETFs are increasingly seen as an important part of a diversified portfolio, either as a hedge against rising prices or as a way to access returns that are uncorrelated to the broader stock market. 

Still, the idea of engaging directly with commodity markets can be intimidating for investors. Many online brokers require a separate account or at least separate controls to trade futures, and even if you get over that hurdle, there's always the question of what to buy and sell – and when.

The eight commodity ETFs featured here can take some of the guesswork out the equation. To compile this list of the best ETFs focused on this diverse asset class, we looked for funds that are benchmarked to physical commodity markets, and provide a simple one-stop way to invest in your normal brokerage account.


 Data is as of April 3.

Jeff Reeves
Contributing Writer, Kiplinger.com

Jeff Reeves writes about equity markets and exchange-traded funds for Kiplinger. A veteran journalist with extensive capital markets experience, Jeff has written about Wall Street and investing since 2008. His work has appeared in numerous respected finance outlets, including CNBC, the Fox Business Network, the Wall Street Journal digital network, USA Today and CNN Money.