Invesco ETFs
Explore our lineup of ETFs and see how they can be cost-effective, tax-efficient tools for maximizing your investments and meeting your portfolio objectives.
Invesco ETFS & ETPS Commodities
Commodity ETPs can play several roles in a portfolio, offering diversification, inflation hedging, and growth potential.
Why partner with us Convenience, ease of access, and transparency
Investing in commodities comes with potential benefits that investors should consider, especially during periods of inflation. Invest in single commodities or a broad basket with active or indexed strategies from a leading provider of ETPs.
Portfolio diversification
Incorporating commodities into a traditional investment portfolio of stocks and bonds may improve risk-adjusted returns.1
Potential inflation protection
Having an allocation to commodities can offer an efficient hedge when inflation is elevated because they typically increase in price.2
Geopolitical hedge
Commodities respond directly to geopolitical shocks, supply disruptions, and macro uncertainty, acting as a real‑asset buffer when global risks elevate.
Catalysts shaping the commodity landscape
Ongoing shifts in geopolitics and global supply chains continue to influence conditions across energy, metals, and other commodity segments. Invesco offers solutions that can help investors navigate an environment shaped by broad structural change and evolving market forces.
What we offer Commodity ETP Suite
| Ticker | Fund name | Total expense ratio | Net expense ratio | How to invest |
|---|---|---|---|---|
| PDBC | Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF | 0.67% | 0.59%* | Invest in PDBC Fact sheet |
| PDBA | Invesco Agriculture Commodity Strategy No K-1 ETF | 0.74% | 0.59%* | Invest in PDBA Fact sheet |
| EVMT | Invesco Electric Vehicle Metals Commodity Strategy No K-1 ETF | 0.73% | 0.59%* | Invest in EVMT Fact sheet |
| DBC | Invesco DB Commodity Index Tracking Fund | 0.89% | 0.84% | Invest in DBC Fact sheet |
| DBA | Invesco DB Agriculture Fund | 0.93% | 0.88% | Invest in DBA Fact sheet |
| DBB | Invesco DB Base Metals Fund | 0.79% | 0.75% | Invest in DBB Fact sheet |
| DBE | Invesco DB Energy Fund | 0.80% | 0.75% | Invest in DBE Fact sheet |
| DBO | Invesco DB Oil Fund | 0.81% | 0.75% | Invest in DBO Fact sheet |
| DBP | Invesco DB Precious Metals Fund | 0.79% | 0.73% | Invest in DBP Fact sheet |
Frequently asked questions
Commodities can be attractive for investors seeking diversification,1 inflation protection,2 or a geopolitical hedge.
- Portfolio diversification: Historically, commodity returns have had a low correlation to equities and a negative correlation to fixed income, which may help improve the risk-adjusted returns of a diversified portfolio.3
- Inflation Protection: Although inflation has been easing year-over-year, the US Consumer Price Index (CPI) remains stubbornly above the US Federal Reserve’s (Fed) 2% target. Commodities have historically been the most efficient hedge for inflation and have returned positively 72% of the time when CPI was above 2%.4
- Geopolitical hedge: Commodities respond directly to real‑world disruptions—such as conflicts, sanctions, or supply‑chain disruptions, that can tighten the availability of energy, metals, and agricultural products. In periods of elevated geopolitical tensions, commodities may serve as an effective real‑asset buffer.
In addition to the benefits of commodities in general, investing through ETFs can also provide increased benefits like convenience, ease of access, and transparency.
- Convenience: While some commodity ETFs and ETPs do hold physical commodities, most are futures- and derivatives-based, allowing investors to participate in the returns without having to worry about taking physical delivery of the commodity. The futures contracts are replaced by a later-dated contract prior to expiry in a process known as "rolling" futures contracts.
- Ease of Access: Like stocks, commodity ETFs and ETPs can be traded on a stock exchange anytime during market hours. This aspect can offer greater flexibility when compared to mutual funds.
- Transparency: ETFs and ETPs may provide increased transparency into their portfolio holdings compared to mutual funds. Most ETFs publicly disclose their holdings daily.
As measured by inflation beta5 from 1998 to 2025, commodities are historically the most efficient hedge for inflation of any major asset class, even when compared to common inflation-fighting instruments, like Treasury Inflation-Protected Securities (TIPS),6 real estate investments trusts (REITs),7 and gold.8 This is because commodities are raw materials used as inputs in housing, transportation, and food, all components of the CPI. In addition, inflation shocks are usually the byproduct of stronger-than-expected demand and/or supply uncertainty, all of which may boost the price of goods.
- Futures contracts trade on exchanges, representing an agreement between the buyer and seller whereby the price is fixed, and the buyer agrees to take delivery of the underlying asset at a specified date in the future. Futures-based commodity ETFs and ETPs use derivatives, including futures and swaps, to deliver commodity exposure.
- In the commodity arena, spot prices typically don’t match futures prices, creating situations of backwardation and contango. Spot prices are the current costs for a particular commodity for immediate delivery, while futures prices reflect delivery of the commodity at a particular future date. Backwardation occurs when the spot price of a commodity is higher than futures prices, signaling an expected shortage of supplies; consumers are willing to pay more to receive the product now in preparation for the shortage. On the flip side, contango describes the scenario in which a commodity’s futures contracts are priced higher than what’s seen in the spot market, signaling an expected surplus; consumers aren’t willing to pay more right now, given the abundance of supplies.
- Most of the first commodities ETFs and ETPs that were launched invest in the front-month contract. Given commodities are physical assets, to avoid physical delivery, funds will have to frequently sell out of expiring contracts and move to the following futures contract. During contango markets, this repeated buying and selling of positions can expose funds to high roll costs, considering they would have to sell a less expensive, expiring contract and buy a more expensive, later-dated contract.
The optimum yield methodology is a key feature of Invesco’s commodity suite. This approach seeks to maximize the roll yield during backwardation markets and minimize roll costs during contango markets, reducing the burden for investors to monitor and understand changing futures curve shapes. During backwardation markets, rolling further out the curve can potentially allow the funds to realize roll yield as the contracts appreciate as they move toward expiry.
Given the global reach of commodities, commodity prices have many drivers. However, some of the key influencing factors include:
- Global Economic Health: The health of the global economy can directly impact the supply and demand of commodities, influencing prices. In particular, developments in China and the US often have an outsized influence since they are the world’s two largest global economies by gross domestic product (GDP), which measures the total value of a country's finished goods and services.
- Green Transition and Climate Volatility: Contrary to popular belief, the Energy Transition/Decarbonization trend is supportive of commodity prices given metals, like copper, aluminum, zinc, and nickel, play a significant role in the world’s path to net zero, yet efforts to reduce carbon emissions are significantly constraining supplies. This combination of growing demand and tightening supply could potentially create sustained global deficits in the metals sector for years — possibly decades — to come.
The growing application of environmental, social, and governance (ESG) and (greenification) investment solutions has also led to significant underinvestment in fossil fuels, such as oil and gas, stunting supply growth while global demand continues to climb. Extreme weather events may continue to upend supplies in the agricultural sector. Furthermore, there may be increased demand for agricultural commodities to be used as “energy crops” for ethanol and biodiesel.
- Geopolitics: Rising geopolitical tension, especially between significant players in this market, can lead to heightened uncertainty and volatility for prices, as we saw play out following Russia’s invasion of Ukraine. Tensions between the US and China have also been rising, which could potentially rewrite existing global trade routes.
Looking for a product?
Transcript
Opportunities in commodities amid volatility
Kathy Kriskey
Head of Alternatives Product Strategy
Right now, commodities are being driven by fast‑moving catalysts that continue to create compelling opportunities across the sector. Supply‑chain realignments, shifting geopolitical dynamics, and technical market drivers are introducing pockets of near‑term volatility, but they may also offer attractive entry points. Taken together, these factors reinforce the case for commodities as both a long‑term strategic allocation and a source of tactical opportunity.
Gold: Supportive long-term momentum
In precious metals, gold has been consolidating around the $5,000‑per‑ounce level following a sharp pullback,1 yet the broader trend remains constructive. China’s central bank logged its fifteenth consecutive month of gold purchases in January, and regulators continue encouraging institutions to limit or reduce exposure to US Treasuries.
Importantly, markets largely view the recent correction as a healthy consolidation within an ongoing uptrend, with long‑term drivers —like persistent central‑bank buying, gradual de‑dollarization, and consistent safe‑haven demand — all still firmly in place.
Energy: Volatility from US-Iran negotiations
Energy markets remain headline‑driven as investors follow developments in US–Iran negotiations. With diplomacy uncertain, markets have shifted into a wait‑and‑see mode, pricing in the risk that tensions could rise if talks stall. The US has increased its military presence in the region, contributing to the spike in crude volatility seen in early February. Meanwhile, India’s pivot away from Russian crude toward greater cooperation with the US could tighten Western oil markets. Still, Russian seaborne exports remain resilient, supported by strong Chinese demand.
Base metals: Seasonal lag tempers long-term bulls
Across base metals, volatility persists, but the medium‑term outlook is still constructive. Temporary softness from Chinese buyers is cyclical, not structural, and key demand drivers like electrification, grid expansion, and infrastructure upgrades — remain intact, with renewed strength expected once activity normalizes after the Lunar New Year.
PDBC: Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF
DBB: Invesco DB Base Metals Fund
Given these dynamics, commodities continue to play an important role in diversified portfolios. Investors may want to consider Invesco’s commodity ETFs — particularly PDBC, a broad‑based strategy offering exposure to energy, metals, and agriculture, and DBB, Invesco’s industrial metals fund.
VOICE OVER FOR MULTIMEDIA TEAM
Before investing, investors should carefully read the prospectus/summary prospectus and carefully consider the investment objectives, risks, charges, and expenses. For this and more complete information about the Fund, call 800-983-0903 or visit invesco.com for the prospectus/summary prospectus.
Important Information
1 Source: Bloomberg L.P. as of Feb. 13, 2026. Gold is represented by XAUUSD, the ticker symbol for spot gold (XAU) traded against the US dollar in the foreign exchange market, representing the cost of one troy ounce of gold in US dollars.
Not a Deposit | Not FDIC Insured | Not Guaranteed by the Bank | May Lose Value | Not Insured by any Federal Government Agency
Diversification does not guarantee a profit or eliminate the risk of loss.
Past performance is not a guarantee of future results. An investment cannot be made into an index.
This does not constitute a recommendation of any investment strategy or product for a particular investor. Investors should consult a financial professional before making any investment decisions.
The opinions expressed are those of Invesco and are based on current market conditions and are subject to change without notice. These opinions may differ from those of other Invesco investment professionals.
There are risks involved with investing in ETFs, including possible loss of money. Index-based ETFs are not actively managed. Actively managed ETFs do not necessarily seek to replicate the performance of a specified index. Both index-based and actively managed ETFs are subject to risks similar to stocks, including those related to short selling and margin maintenance. Ordinary brokerage commissions apply. The Fund's return may not match the return of the Index. The Funds are subject to certain other risks. Please see the current prospectus for more information regarding the risks associated with an investment in the Funds.
Shares are not individually redeemable, and owners of the Shares may acquire those Shares from the Fund and tender those Shares for redemption to the Fund in Creation Unit aggregations only, typically consisting of 10,000, 20,000, 25,000, 50,000, 75,000, 80,000, 100,000, or 150,000 Shares.
Invesco Distributors, Inc. 02/26
NA5219330
