Gold’s Surge Leaves Broad Commodity ETFs Behind

Gold has been one of the standout trades of 2025. The SPDR Gold Shares (GLD), the largest gold ETF in the U.S., is up 28% year to date, as investors have flocked to the yellow metal amid trade policy uncertainty, inflation concerns and heightened central bank demand.

But the same can’t be said for the broader commodities market.

Diversified Commodity ETFs Lag GLD

Despite gold’s rally, most diversified commodity ETFs have lagged significantly, weighed down by exposure to weaker-performing assets, especially crude oil. Case in point: The Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF (PDBC), the largest diversified commodities ETF with $4.3 billion in assets, is down 3.8% this year.

PDBC invests in futures contracts on 14 of the most heavily traded commodities, including gold. However, gold only makes up about 10% of the portfolio. In contrast, oil and oil products account for nearly half. That’s been a drag, with WTI crude prices down 17% year to date.

According to the fund’s prospectus, “The weight of each of [the] futures contracts in the portfolio reflects the Adviser’s view of the economic significance and market liquidity of the corresponding, underlying commodity.”

Other diversified commodity funds have performed better but still trail far behind gold. The $2.4 billion First Trust Global Tactical Commodity Strategy Fund (FTGC) is up 1.7% this year. FTGC, which is actively managed, currently has its largest allocation in gold (9.2%) and keeps oil exposure relatively modest at under 15%.

A rules-based fund, the $1.4 billion abrdn Bloomberg All Commodity Strategy K-1 Free ETF (BCI), tracks the Bloomberg Commodity Index, which weights 24 commodities based on liquidity, U.S. production data and diversification constraints. Gold comprises just under 10% of BCI’s portfolio, while energy, metals and agriculture round out the rest. Year to date, the fund is up 3.9%.

Commodity ETF Outperformers 

Returns for most broad market commodity ETFs are underwhelming, but a small group of gold-heavy commodity ETFs have delivered solid gains. 

The top-performer among the bunch is the actively managed 3EDGE Dynamic Hard Assets ETF (EDGH), which is up around 11% in 2025. The fund allocates 23.5% of its portfolio to the Sprott Physical Gold Trust (PHYS) and another 23% to the Sprott Physical Gold and Silver Trust (CEF). It also holds about 22% in the Invesco Agriculture Commodity Strategy No K-1 ETF (PDBA), with the remainder in Treasury ETFs.

According to EDGH’s disclosures, the fund’s positioning is driven by “model research” and finalized by the investment committee to target assets “which appear undervalued and/or are poised to respond favorably to financial market catalysts.”

Other gold-tilted outperformers include the Hartford Schroders Commodity Strategy ETF (HCOM), up around 6%, and the Harbor Commodity All-Weather Strategy ETF (HGER), up roughly 9%. HCOM has about 28% of its portfolio in gold and precious metals, while HGER allocates approximately 34% to the sector.

The Bottom Line 

Broad commodity ETFs with greater exposure to gold have outperformed those dominated by energy and other commodity categories.

For investors, the key takeaway is to figure out what role they want a diversified commodity ETF to play in their portfolio. If the goal is to get pure exposure to gold, then a dedicated gold ETF like GLD or the cheaper SPDR Gold MiniShares Trust (GLDM) may make sense. 

Alternatively, investors may pair a traditional commodity index fund with a gold ETF to increase exposure to the metal.

Others may prefer actively managed funds like EDGH, which have shown a willingness to tilt toward stronger-performing segments of the market.