Commodities ETFs are a type of exchange-traded fund (ETF) that invest in physical commodities such as precious metals, energy, agricultural products, and industrial metals. These ETFs provide investors with exposure to the performance of the commodities market, which can include changes in the price of the underlying commodities.

Commodity ETFs may invest in various physical commodities such as gold, silver, oil, wheat, corn, and copper. They can also invest in futures contracts, which are agreements to buy or sell a specific commodity at a future date at a pre-determined price. This allows investors to gain exposure to the price movements of a commodity without physically owning it.

Commodities ETFs can be used as a form of diversification for an investment portfolio as they tend to have a low correlation with other asset classes, such as stocks and bonds. They also provide a hedge against inflation, as the prices of many commodities tend to increase when inflation rises.

Commodities

The Breakwave Tanker Shipping ETF seeks to provide exposure to the daily change in the price of crude oil tanker freight futures by holding a portfolio consisting primarily of the nearest calendar quarter of futures contracts on Baltic Exchange tanker freight rate indexes.

NYSEArca

BWET

The Direxion Auspice Broad Commodity Strategy ETF seeks total return through a rules-based strategy investing in a diversified basket of commodity futures and related instruments.

First Trust Global Tactical Commodity Strategy Fund seeks total return through a tactical portfolio of commodity futures and related investments.

NasdaqGM

FTGC

The ETF aims to provide long exposure to the broad commodities market through synthetic futures positions, ensuring no single commodity or sector dominates the index. It typically invests at least 80% of its net assets in securities or instruments comprising the Bloomberg Enhanced Roll Yield Total Return Index.

Symbol	Name	Sharpe Ratio (1Y)	Sharpe Ratio (5Y)	Sharpe Ratio (10Y)	Risk / Return Rank
BWET	Breakwave Tanker Shipping ETF	17.90	—	—	99
ZSC	USCF Sustainable Commodity Strategy Fund	2.44	—	—	87
COM	Direxion Auspice Broad Commodity Strategy ETF	2.27	0.90	—	80
FTGC	First Trust Global Tactical Commodity Strategy Fun...	2.25	0.82	0.53	78
CERY	SPDR Bloomberg Enhanced Roll Yield Commodity Strat...	2.24	—	—	76

Top Commodities ETFs by Sharpe Ratio

Top Commodities ETFs by Sharpe Ratio