Commodities Are Quietly Having a Moment
While headlines still focus on big tech and AI, a different group of assets has been staging its own comeback in 2025: commodities. From copper miners to gold, several commodity-linked ETFs have delivered strong year-to-date returns as the world invests in electrification, energy security, and inflation protection. For everyday investors, commodity ETFs provide a simple way to tap into these powerful real-world trends.
The key appeal is that commodities are tied directly to things people use every day—fuel, food, metals, and materials, not just digital services or software. That makes them interesting both as a diversifier and as a potential source of growth when supply is tight and global demand remains firm.
Metals: Standout Winners in 2025
One of the clearest bright spots this year has been industrial and precious metals. The Global X Copper Miners ETF (COPX), which invests in companies mining copper used in electric vehicles, power grids, and electronics, has delivered a powerful move higher, with year-to-date returns in the low-60% range as of late October 2025. That surge reflects how central copper has become to the global energy transition.
At the same time, gold has reasserted itself as a go-to store of value. SPDR Gold Shares (GLD), which holds physical gold bullion, is up more than 50% year-to-date in 2025, as investors react to inflation pressures, geopolitical tensions, and concerns about government debt. This combination of strong copper and gold performance has highlighted how metals can offer both growth (through electrification) and defense (through safe-haven demand) in the same asset class.
Strategic Metals and Energy: Fueling the Future
Beyond copper and gold, strategic metals have also turned heads. VanEck Rare Earth & Strategic Metals ETF (REMX), which targets companies involved in rare earths and other critical materials for batteries, magnets, and clean tech, has returned nearly 70% year-to-date as of late September 2025. Much of this strength reflects growing government and corporate investment in securing supply chains for EVs, wind turbines, and advanced electronics.
On the energy side, the picture has been more mixed but still relevant for portfolio construction. The United States Oil Fund (USO), which tracks oil futures, has posted a modest single-digit gain over the past year and a roughly flat to slightly positive profile in 2025, depending on the exact date snapshot. This reflects a tug-of-war between steady demand and shifting expectations for global growth and production. Natural gas exposure through UNG, and equity-based energy plays like XOP (exploration and production) and XES (oilfield services), remain tools for investors who believe energy security and underinvestment in supply will support prices over the long run.
Agriculture: A Slow Burn, not a Spike
Agriculture has been quieter in 2025, but that doesn’t mean it has lost its strategic role. The Invesco DB Agriculture Fund (DBA), which holds futures tied to crops and livestock, has hovered around flat to low-single-digit returns year-to-date while still posting a positive one-year result. This suggests that agriculture remains more of a slow-burn inflation hedge than a high-flying trade in the current environment.
In contrast, VanEck Agribusiness ETF (MOO)—which holds stocks of fertilizer producers, seed companies, and farm equipment makers—has delivered low- to mid-teens year-to-date returns as of early December 2025. Those gains are modest versus some metals ETFs but highlight how the “picks and shovels” of farming can benefit as the world upgrades equipment and invests in productivity to cope with climate and supply challenges.
How a Retail Investor Might Use These ETFs
For a retail investor, the message of 2025 is not that every commodity segment rallies at once, but that different parts of the commodity complex shine at different times. This year, metals like copper and rare earths have led performance, while gold has provided a powerful hedge and agriculture has quietly carried its weight. Energy has played a more cyclical role, offering exposure to global growth and geopolitical risk rather than runaway upside.
A simple, story-driven approach might involve:
- Using gold and silver as long-term hedges against inflation and uncertainty.
- Adding copper and rare earth metals for targeted growth linked to electrification and critical materials, where year-to-date returns have been particularly strong.
- Layering the entire oil and gas value chain for investors who believe energy remains under-supplied and strategically important.
- Including agriculture as long-term food and agribusiness exposures that can help cushion portfolios from rising food costs and evolving global diets.
Together, these commodities tell a clear story: in a world that still runs on fuel, metals, and food, commodities are more than just a side bet—they are a direct way to invest in the building blocks of everyday life, with 2025 performance already offering a preview of their potential upside.
