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What Lies Ahead for Commodity ETFs in 2023

  • (1:00) - What Should Investors Expect From Commodities In 2023?

  • (10:35) - Invesco Commodity ETF Suite: PDBC & DBC

  • (20:15) - Which Commodity Is Set To Perform The Best This Year?

  • (26:30) - Should You Be Investing In EV Vehicle Metals?

  • (34:50) - Expectations For Agriculture Commodities in 2023

  • (39:00) - Invesco DB Agriculture Fund & Commodity Strategy NO K-1 ETF: DBA & PDBA

  • (42:15) - Finding The Right Commodity Investment For Your Portfolio

  • (47:00) - Episode Roundup: EVMT, KMET, CHRG, ZSB

  • Podcast@Zacks.com

 

In this episode of ETF Spotlight, I speak with Kathy Kriskey, Commodity Strategist at Invesco, about the outlook for commodities in 2023.

Commodities significantly outperformed stocks and bonds last year. The S&P GSCI Commodity Index rose 26%, following a 40% gain in 2021. Investors have become cautious on the asset class lately as their worries have shifted from inflation to economic growth slowdown.

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The Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF PDBC holds futures contracts on 14 commodities across the energy, precious metals, industrial metals and agriculture sectors.

The demand for commodities crucial to the energy transition is projected to surge in the coming years as the push for clean energy technologies accelerates. Several products focused on EV battery materials have been introduced in the past few months thanks to immense investor interest in these commodities.

The Invesco Electric Vehicle Metals Commodity Strategy No K-1 ETF EVMT holds futures contracts on aluminum, copper, nickel, cobalt, zinc and iron ore.

The outlook for food commodities remains uncertain as the war in Ukraine shows no signs of ending soon. Climate change and extreme weather events also continue to push food prices higher.

The Invesco DB Agriculture ETF DBA is currently the most popular product for broad exposure to ag commodities. The actively managed Invesco Agriculture Commodity Strategy No K-1 ETF PDBA, which made its debut last year, comes with a lower expense ratio.

Tune in to the podcast to learn more.

Make sure to be on the lookout for the next edition of the ETF Spotlight and remember to subscribe! If you have any comments or questions, please email podcast@zacks.com.

 

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Invesco DB Agriculture ETF (DBA): ETF Research Reports

Invesco Optimum Yield Diversified Commodity Stratgy No K-1 ETF (PDBC): ETF Research Reports

Invesco Electric Vehicle Metals Commodity Strategy No K-1 ETF (EVMT): ETF Research Reports

Invesco Agriculture Commodity Strategy No K-1 ETF (PDBA): ETF Research Reports

To read this article on Zacks.com click here.

Zacks Investment Research