Best metals ETFs to buy in 2024
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10/1077% of retail CFD accounts lose money.
Ranging from miners to physical reserves, ETFs give investors exposure and easy access to stocks that operate in the metals industry. This page picks the best ones for the year ahead.
What are the top metals ETFs to buy?
Copy link to sectionOur expert analysts have picked five of the top metal ETFs for this year listed in the table below. To find out more information about each one, continue scrolling to learn more.
| # | ETF symbol | ETF name | Where to Trade |
|---|---|---|---|
| 1 | DBB | Invesco DB Base Metals Fund | Buy DBB 77% of retail CFD accounts lose money. |
| 2 | PICK | iShares MSCI Global Metals & Mining Producers | Buy PICK 77% of retail CFD accounts lose money. |
| 3 | GLTR | Aberdeen Standard Physical Precious Metals Basket Shares | Buy GLTR 77% of retail CFD accounts lose money. |
| 4 | REMX | VanEck Rare Earth/Strategic Metals | Buy REMX 77% of retail CFD accounts lose money. |
| 5 | XME | SPDR S&P Metals & Mining ETF | Buy XME 77% of retail CFD accounts lose money. |
1. Invesco DB Base Metals Fund (NYSEARCA: DBB)
Copy link to sectionThe Invesco DB is a fund designed for investors who want a cost-effective way to invest in commodity futures. It seeks to track changes in the level of the DBIQ Optimum Yield Industrial Metals Index and is composed of futures contracts on some of the most liquid and widely used base metals.
Its holdings are spread fairly equally across three base metals: aluminum, zinc, and copper. As it consists of futures contracts, its performance is directly linked to its managing owner and their trading principles and ability. The futures market is volatile and even small movements can result in large losses, meaning this fund is higher risk than others in our list.
This is confirmed through its performance. Since its inception in 2007, the fund lost over 60% in value in the two years following. However, it has recovered somewhat since then although has seen more of a range bound price rather than a trend. Its up and down price movements means it’s most suited to a more experienced trader or investor.
77% of retail CFD accounts lose money.
2. iShares MSCI Global Metals & Mining Producers (BZX: PICK)
Copy link to sectionPICK tracks the performance of an index called the MSCI ACWI Select Metals & Mining Producers Ex Gold & Silver Investable Market Index. It invests in companies that are involved in the extraction or production of diversified metals, however does not include gold and silver.
While it contains stocks from around the world, it has a stronger focus on companies based in either the UK, US, and Australia where over 50% of its holdings reside. The top two companies in this ETF belong to the first and second largest mining companies in the world, BHP and Rio Tinto.
It dropped in value in the four years following its inception in 2012, losing over 70% from its opening price. However, following the covid pandemic, it has performed very well, gaining over 100%. Its well diversified portfolio and mostly equal weighting offers investors easy access to the world’s best metal miners and producers.
77% of retail CFD accounts lose money.
3. Aberdeen Standard Physical Precious Metals Basket Shares (NYSEARCA: GLTR)
Copy link to sectionUnlike many ETFs, the Aberdeen Standard Physical Precious Metals does not track an index. Rather, it seeks to reflect the performance of physical assets including, gold, silver, platinum, and palladium. The fund is designed for investors wanting a cost effective and convenient way to invest in physical metals.
Its largest holding out of the four metals is gold, where almost 60% of the total fund is focused. Second is silver which makes up nearly 30%, with platinum and palladium making up the last 10%. All of its metals bars are held in a secure London vault at JP Morgan and Chase bank.
Since its inception in 2010 it has risen and fallen inline with the price of the metals it owns. When gold prices started to rally in 2016, so did GLTR, increasing by nearly 100% in value. Its price was further bolstered during the pandemic when investors moved to safe haven metals adding 60% to its price.
77% of retail CFD accounts lose money.
4. VanEck Rare Earth/Strategic Metals (NYSEARCA: REMX)
Copy link to sectionThe VanEck Rare Earth/Strategic Metals ETF seeks to replicate the performance and yield of an index called the MVIS Global Rare Earth/Strategic Metals. The index tracks companies involved in producing, refining, and recycling of rare earth and strategic metals and minerals.
The fund only includes companies that are pure plays in the rare earth/strategic metals industries and offers global coverage. However, the majority of its holdings reside in China, Australia, and the United States. Its two largest holdings are Liontown Resources and Zhejian Huayau Cobalt, both of which amount to about 15% of the ETF.
The weighting and size of the fund is what makes it different to many others. It spreads its money around its 20 holdings fairly evenly meaning it’s a more diverse way to invest in the rare earth and strategic metals industries.
77% of retail CFD accounts lose money.
5. SPDR S&P Metals & Mining ETF (NYSEARCA: XME)
Copy link to sectionThe SPDR S&P employs a sampling strategy, which means that it is not required to purchase all stocks belonging to the index it tracks. Instead, it is able to pick and choose which stocks to buy with the aim of tracking the index. It seeks to track the performance of the S&P Metals & Mining Select index.
Similar to the VanEck ETF above, XME holds only a small number of companies while offering an equal weighting across the board. It currently consists of 30, small, medium, and large cap companies from around the world.
It offers exposure to a broad range of metal sectors, including gold, silver, aluminum, and copper. Although steel stocks currently make up over 40% of its total holdings. Its equal weighting and diversification mean investing in this ETF is a good way to gain exposure to all sizes of companies operating in the metals market.
77% of retail CFD accounts lose money.
Where to buy the best metals ETFs
Copy link to sectionTo buy ETFs you will need to register with an online broker. ETFs work in the same way regular stocks do and you can buy and sell them at any time. The table below lists some of the best brokers around offering metal ETFs. Click through to any of the links to get started in just a few minutes.
77% of retail CFD accounts lose money.
82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
What is a metals ETF?
Copy link to sectionIt’s an exchange traded-fund that holds shares in companies that operate in the metals industry. Being such a large and diverse sector, these companies can include miners, producers, and physical holders among others. The metals industry is vital for most economies around the world and is crucial for many industrial sectors.
Are metals ETFs a good investment?
Copy link to sectionYes they can be and are a good way to diversify a portfolio. The metals industry is large and provides resources required for other industries to operate. Metals are essential for manufacturing, power generation, and construction. Technological advances have resulted in less labor intensive production and cleaner and more environmentally friendly practices.
Generally, these ETFs offer stability and slow movements. Although volatility can arise, especially as many closely resemble the prices of the most popular metals such as gold, silver, copper, and steel. Any wild price swings in a specific metal, can sometimes lead to erratic moves in some of the ETFs.
However, metals and especially precious metals are often seen as a hedge against inflation and a safe haven. This makes them particularly popular among investors seeking an aspect of safety in their portfolios. Whatever you decide to do, it’s key to keep up to date with the latest news and developments, which you can do so by clicking the links below.
More of the best ETFs
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