ETF Prices Today
Live prices for 15 precious metals and commodity ETFs, updated every 30 seconds.
Commodity ETFs: Accessible Commodity Investing
Commodity exchange-traded funds (ETFs) provide investors with exposure to precious metals, base metals, and broad commodity indices without the need to hold physical assets or manage futures contracts. Since the launch of GLD in 2004, commodity ETFs have transformed how individual and institutional investors access raw materials markets.
Gold ETFs (GLD, IAU, SGOL, AAAU) hold physical gold bullion in secure vaults in London, New York, and Zurich, with each share representing a fractional ownership of the underlying metal. Silver ETFs (SLV, SIVR) similarly hold physical silver bars in approved vaults. Platinum and palladium ETFs (PPLT, PALL) provide access to these rarer platinum group metals, which are critical for automotive catalytic converters, hydrogen fuel cells, and industrial applications.
Physical metal ETFs offer a significant advantage over futures-based funds: no roll costs, no contango drag, and direct tracking of the spot price. This makes them ideal for long-term investors seeking straightforward commodity exposure without the complexity of futures markets.
Broad Commodity & Base Metal ETFs
Diversified commodity ETFs like DBC, GSG, PDBC, and COMT provide exposure to baskets of 14-24 commodities across energy, metals, and agriculture. These funds offer broad diversification within a single ticker, making them popular for portfolio allocation and inflation hedging strategies.
Base metal ETFs like CPER (copper) and JJN (nickel) offer targeted industrial metal exposure. Copper in particular has seen growing investor interest due to its critical role in electrification, renewable energy infrastructure, and electric vehicle manufacturing.
Understanding differences in roll strategy (Optimum Yield vs front-month), expense ratios, and tax treatment (K-1 vs 1099) helps investors choose the right fund. DBC uses Deutsche Bank's Optimum Yield strategy to minimize contango costs, while GSG tracks a broad S&P index with front-month rolling. PDBC offers 1099 tax reporting, avoiding the complexity of K-1 forms that many individual investors prefer to avoid.
Why Track ETFs Alongside Spot Prices
ETF prices can diverge from spot commodity prices due to expense ratios, premiums/discounts to NAV, contango drag on futures-based funds, and tracking methodology differences. Monitoring both helps investors identify the most cost-effective way to gain commodity exposure and compare funds within the same asset class.
NAV premiums and discounts are particularly important during periods of high volatility or market stress. During the 2020 pandemic-driven gold rally, GLD briefly traded at a premium to NAV as investor demand outpaced the creation of new shares. Conversely, discounts can appear when selling pressure exceeds the pace of share redemptions.
For futures-based funds, comparing ETF performance against spot prices reveals the true cost of contango drag over time. A fund may show a positive return while its underlying commodity gained even more, with the difference attributable to roll costs and management fees.
Physical vs Futures-Based Commodity ETFs
Physical ETFs (GLD, SLV, PPLT, PALL) hold actual metal in secure vaults across London, New York, and Zurich. Each share represents a fractional claim on the underlying bullion, and the fund's custodian publishes daily bar lists for transparency. Physical ETFs provide the closest tracking to spot prices with minimal tracking error, making them the preferred choice for investors seeking pure commodity exposure.
Futures-based ETFs (DBC, GSG, PDBC) hold commodity futures contracts rather than physical assets. This structure enables exposure to commodities that are difficult or impractical to store physically (crude oil, natural gas, agricultural products), but introduces roll costs. When the futures curve is in contango, rolling from expiring contracts to later-dated ones erodes returns over time.
Tax treatment also differs between the two structures. Physical precious metals ETFs are taxed as collectibles at a maximum 28% long-term capital gains rate, while futures-based ETFs receive 60/40 tax treatment (60% long-term, 40% short-term) regardless of holding period. Some newer funds like PDBC are structured to issue 1099 forms rather than K-1s, simplifying tax reporting for individual investors.
Commodity ETF Expense Ratios & Total Cost of Ownership
Beyond headline expense ratios, the true cost of owning a commodity ETF includes bid-ask spreads, tracking error, roll costs (for futures-based funds), and any premium or discount to NAV. Evaluating total cost of ownership is essential for choosing the right fund, especially for long-term positions.
Among gold ETFs, expense ratios range significantly: GLD charges 0.40%, IAU charges 0.25%, and SGOL charges just 0.17%. For a $100,000 position held over a decade, the difference between GLD and SGOL compounds to roughly $2,300 in additional costs. However, GLD's superior liquidity means tighter bid-ask spreads, which matters more for active traders executing frequent transactions.
For long-term buy-and-hold investors, lower expense ratios (SGOL, IAU) typically deliver better net returns. For active traders and institutions moving large positions, GLD's deep liquidity and tight spreads often outweigh its higher expense ratio. The right choice depends on your investment horizon, position size, and trading frequency.
Frequently Asked Questions
- What is the difference between GLD and IAU gold ETFs?
- GLD (SPDR Gold Shares, State Street) is the largest gold ETF with the highest liquidity and a 0.40% expense ratio. IAU (iShares Gold Trust, BlackRock) has a lower 0.25% expense ratio and a smaller share price, making it more accessible for smaller investors. Both hold physical gold in London and New York vaults. For long-term holders, IAU's lower fees compound significantly—over a decade, the 0.15% annual difference on a $100K position adds up to thousands of dollars in savings.
- Do commodity ETFs hold physical metal or futures contracts?
- It depends on the fund. Precious metals ETFs (GLD, IAU, SLV, PPLT, PALL) hold physical metal stored in secure vaults. Broad commodity ETFs (DBC, GSG) use futures contracts, which introduces roll costs and contango drag. Some newer funds like PDBC optimize roll timing to reduce contango drag. Always check the fund prospectus to understand whether the ETF holds physical assets, futures contracts, or a mix of both.
- What is contango drag and how does it affect commodity ETFs?
- Futures-based ETFs must "roll" expiring contracts into the next month. When the futures curve is in contango (future price is higher than spot), rolling costs money because the fund sells cheaper near-month contracts and buys more expensive far-month contracts. Over time, this creates a performance drag versus the spot price. Physical ETFs avoid this entirely. Roll-optimized funds like PDBC use strategies to minimize the impact by selecting contracts further out on the curve or timing rolls to reduce contango losses.
- Are gold ETFs a good inflation hedge?
- Gold has historically performed well during high inflation periods, such as the 1970s and 2020-2023. Gold ETFs provide easy exposure without the costs and logistics of physical storage. However, gold can underperform during rising rate environments even when inflation is elevated, since higher real rates increase the opportunity cost of holding a non-yielding asset. Consider gold ETFs alongside TIPS, real estate, and other real assets for a more complete inflation hedge portfolio.
- What are the tax implications of commodity ETFs?
- Precious metals ETFs (GLD, SLV) are classified as collectibles by the IRS and taxed at a maximum 28% rate on long-term capital gains—higher than the standard 20% rate for equities. Futures-based ETFs (DBC) issue K-1 tax forms and use 60/40 tax treatment (60% long-term, 40% short-term regardless of holding period). Some newer ETFs (PDBC) are structured as 1099-reporting funds to simplify tax filing. Always consult a tax professional for your specific situation.
- How do I choose between physical gold ETFs and gold mining ETFs?
- Physical gold ETFs (GLD, IAU, SGOL) track the spot gold price directly with low tracking error, offering pure gold exposure. Mining ETFs (GDX, GDXJ) provide leveraged exposure to gold prices but add operational risk, geopolitical risk, management quality, and company-specific factors. Miners tend to outperform in gold bull markets due to operating leverage but underperform in bear markets. Physical ETFs are the purer gold exposure with less volatility, while mining ETFs suit investors seeking amplified returns who can tolerate the additional risk.