9 Best Commodity ETFs to Buy Now

These commodity ETFs offer investors exposure to the diverse asset class, which is a helpful hedge against inflation.

wheat field
(Image credit: Getty Images)

For many investors who have been watching the headlines throughout 2022, fears of inflation have caused them to reassess their portfolios. After all, when prices rise and consumers' purchasing power is eroded, it can sometimes have a negative effect on certain industries or businesses.

One asset class that has proven resilient amid persistently rising prices is commodities. From metals to agricultural products to energy sources, commodities of many different flavors have naturally seen their values rise amid inflationary pressures. As a result, most commodity stocks and commodity exchange-traded funds (ETFs) have been on a pretty profitable run for most of the last 12 months.

And while the latest consumer price index (CPI) reading has many wondering if inflation has peaked, "the after effects of rapid inflation and rising interest rates will probably linger for some time," says Nick Bennenbroek, international economist at Wells Fargo Securities.

What's more, hard assets like commodities and commodity ETFs are increasingly seen as an important part of a diversified portfolio, either as a hedge against rising prices or simply a way to access returns that are uncorrelated to the broader stock market. But for many investors, the notion of engaging directly with commodity markets can be intimidating. Most online brokers require a separate account or at least separate controls to trade futures, and even if you get over that hurdle, there's always the question of what to buy and sell – and when.

The nine commodity ETFs featured here can take some of the guesswork out the equation. These funds are all benchmarked to physical commodity markets, and provide a simple one-stop way to invest in your normal brokerage account.

 Data is as of Nov. 21.  

Jeff Reeves
Contributing Writer, Kiplinger.com

Jeff Reeves has covered finance and capital markets since 2008, contributing to outlets including CNBC, the Fox Business Network, the Wall Street Journal digital network, USA Today, US News & World Report and CNN Money.