Commodity ETFs track the performance of various commodities like metals, energy, and agriculture goods. They enable investors to gain exposure to these commodities without buying the physical goods, offering portfolio diversification and potential protection against inflation. Given the expectation of higher inflation from new tariff policies, now could be a good time to invest in commodity ETFs. We have highlighted three Canadian ETFs with positive returns this year: Global X Uranium Index ETF (TSE:HURA), iShares Silver Bullion ETF (TSE:SVR), and Global X Crude Oil ETF (TSE:HUC).
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Let’s take a deeper look at these three ETFs.
Global X Uranium Index ETF (HURA)
The HURA ETF tracks the performance of the Solactive Global Uranium Pure-Play Index. This index includes companies engaged in uranium exploration, mining, and refining businesses. With the growing demand for nuclear energy, HURA could benefit from potential increases in uranium prices, making it a great investment opportunity.
As of date, the ETF has C$107.27 million in assets under management (AUM), with the top 10 holdings contributing 86.17% of the portfolio. Importantly, it has an expense ratio of 1.06%. The HURA ETF has returned 15.19% year-to-date.
iShares Silver Bullion ETF (SVR)
The SVR ETF provides investors with direct exposure to silver bullion prices, which represent physical silver with high purity, typically in the form of bars, ingots, or coins. The fund aims to track the price of silver, providing a convenient and cost-effective way to invest in this precious metal.
To date, the ETF has C$97.77 million in AUM and an expense ratio of 0.66%. So far in 2024, SVR ETF has generated a return of 25.92%.
Global X Crude Oil ETF (HUC)
The HUC ETF seeks to replicate the performance of the Solactive Light Sweet Crude Oil Winter MD Rolling Futures Index. This index tracks the price of the December West Texas Intermediate (WTI) Light Sweet Crude Oil futures contract. Overall, HUC provides investors with exposure to the global oil market and the potential for capital appreciation.
The HUC ETF has $25.09 million in AUM and an expense ratio of 1.38%. Its top 10 holdings contribute 34.49% of the portfolio. Year-to-date, HUC ETF has generated a return of 4.06%.
Concluding Thoughts
ETFs are a low-cost, diversified, and transparent way to participate in the market. For investors seeking exposure to the commodity market, ETFs like HURA, SVR, and HUC could be potential options.
