What is a commodity ETF?

Commodity ETFs aim to track the price of a commodity (like gold) or a basket of commodities. Structure matters: some hold physical commodities (mostly precious metals), while many use futures contracts.

Futures-based commodity ETFs can be affected by roll yield and the shape of the futures curve (contango/backwardation), which can cause returns to differ from spot price moves over time.

If you're considering commodity exposure, read the fund structure and risks. Commodity ETFs can diversify a portfolio, but they can be volatile and are often best treated as a small allocation rather than a core holding.