What are the best ASX commodity ETFs to invest in?

Considering an investment in commodities? See our list of 10 leading commodity ETFs on the ASX below.

Watch the top 10 commodity ETFs in Australia

Data as of 5 May 2025. Source: Stake, ASX.

*The list of funds mentioned is ranked by assets under management. When deciding what stocks to feature, we analyse the company's financials, recent news, advancement in their timeline, and whether or not they are actively traded on Stake.

Find out which are the best commodity ETFs to add to your portfolio

1. Perth Mint Gold ETF ($PMGOLD)

Gold has been an integral part of the financial world for thousands of years, and it remains one of the most popular commodities to invest in. The Perth Mint Gold ETF is the largest gold commodity ETF in Australia, with $1.5 billion under management.

This fund is particularly notable for being run by the Perth Mint, which is owned by the Government of Western Australia.

As a result, the fund’s physical holdings are directly backed by a sovereign entity. This fact, when combined with a rock-bottom expense ratio of just 0.15%, explains the fund’s popularity.

🆚 Compare these ETFs: PMGOLD vs GOLD→

2. Global X Physical Silver ($ETPMAG)

Gold’s popularity as an investment metal is trailed closely by silver. While the two metals tend to move in tandem, silver often has a higher volatility, earning it the nickname ‘the devil’s metal’ amongst professional traders.

Global X’s physical silver fund offers investors an accessible way to achieve silver market exposure.

With a 0.49% expense ratio and physical silver stored in certified London vaults, ETPMAG is a popular option for ASX-listed silver investing.

💡Related: What are the biggest silver mining companies on the ASX?→

3. VanEck Gold Bullion ETF ($NUGG)

NUGG is another way for investors to gain gold exposure via ASX. Because NUGG and PMGOLD offer essentially the same investment exposure, the VanEck fund is less popular due to a slightly higher expense ratio. Overall, investors are likely to be best served by the Perth Mint fund, unless they have a particular reason to invest in VanEck vehicles. 

4. Betashares Global Energy Comp Currency Hedged ETF ($FUEL)

Unlike other funds on this list, FUEL doesn’t offer commodity exposure directly. Instead, the fund invests in some of the world’s leading energy companies, tracking the Nasdaq Global ex-Australia Energy Hedged AUD Index. This index is hedged into Australian dollars, minimising currency risks. 

Although this approach is a more roundabout way to get commodity exposure, FUEL could be a good fit for investors who want to invest in industries like oil and natural gas.

FUEL’s expense ratio of 0.57% is slightly higher than peers, and the fund’s top holdings include Shell ($SHEL), Exxon ($XOM), and Chevron ($CVX). 

5. Betashares Crude Oil Index Currency Hedged Complex ETF ($OOO)

This Betashares fund offers oil exposure through the futures market. Due to the mechanics of futures markets, OOO’s performance is unlikely to exactly match oil spot prices. Nonetheless, this fund could be a good option to approximately track crude oil prices.

Like FUEL, OOO is currency hedged to the Australian dollar.

Notably, the fund has a high expense ratio of 1.29%. As a result, this fund might be best suited for investors looking to express a short-term view on oil prices, as fees could impair long-term performance. 

6. Global X Physical Precious Metal Basket ($ETPMPM)

Unlike many other funds on this list, this Global X ETF doesn’t track a single commodity. Instead, ETPMPM invests in a basket of several precious metals, specifically gold, silver, platinum, and palladium.

Due to its diverse components, this fund is unlikely to be a good fit for an investor focused on a specific metal. However, it could be a compelling choice for investors anticipating continued growth in the EV and solar panel market, as these technologies make heavy use of precious metals.

ETPMPM features a moderate expense ratio of 0.44%.

7. Betashares Global Agriculture Comp Currency Hedged ETF ($FOOD)

Like FUEL, FOOD doesn’t invest in underlying commodities. Instead, this fund is focused on the world’s leading agricultural companies and is hedged to the Australian dollar.

FOOD tracks the Nasdaq Global ex-Australia Agriculture Companies Hedged AUD Index, with top holdings including Marubeni, Nutrien ($NTR), and Corteva ($CTVA). The fund’s two largest subsectors are fertilisers & agricultural chemicals and packaged food & meats.

Overall, this fund could be a good fit for investors anticipating continued global growth in the food industry.

8. Global X Physical Platinum ($ETPMPT)

ETPMPT is a sister fund to Global X’s other commodity metal offerings, this time focused on platinum. Platinum is primarily used to manufacture catalytic converters for vehicles, although it’s also a popular metal in the jewellery industry.

Interestingly, because electric vehicles do not require catalytic converters, growth in the EV market could cause structurally smaller demand for platinum.

As such, ETPMPT might be a good fit for investors who anticipate that the global shift to EVs will take longer than expected.

ETPMPT has an expense ratio of 0.49%.

9. Global X Hydrogen ETF ($HGEN)=

Hydrogen has been drawing increased interest as a commodity for its potential use as an energy source. While full-scale deployment of ‘green hydrogen’ still seems to be years away, the commodity could prove to be a low-cost alternative to traditional fossil fuels. In fact, firms like Airbus ($EADSY) are even attempting to deploy hydrogen-fueled planes.

Global X’s HGEN ETF offers access to companies exposed to developments in the global hydrogen industry. These firms include California’s Bloom Energy and Korea’s Dongjin Semichem. While HGEN’s expense ratio of 0.69% is slightly expensive, the fund is an intriguing choice for investors who believe in the potential of hydrogen energy.

💡Related: What are the best hydrogen stocks to buy in Australia?→

10. Global X Physical Gold ($GOLD)

Global X’s physical gold ETF is the smallest ETF on the list, with just $12.5 million under management.

Due to the fund’s 0.40% expense ratio, GOLD is far less popular than less-expensive options like PMGOLD and NUGG.

Unless investors have a particular reason to select Global X funds, they will likely be best served by choosing the lowest-cost gold fund available.

Ways to invest in commodities

There are several different ways to invest in commodities in Australia, each of which comes with unique tradeoffs:

• Physical holdings: Investors can physically purchase and store some commodities like gold and silver, although doing so can be expensive and challenging.
• Futures contracts: Many commodities are traded on the futures market, and investors can get exposure by buying futures contracts. However, this approach requires careful management to navigate the complexities of the futures market.
• Commodity stocks: Purchasing shares in certain companies, including energy and agricultural firms, are closely tied to the prices of underlying commodities.
• Commodity ETFs: Investing in ETFs is a low-cost and accessible way to access a diverse range of underlying commodities and is the simplest way to get exposure.

How to invest in commodities in Australia?

The main way to invest in commdities is through ETFs listed on the ASX, using an online investment platform. Follow our step by step guide below:

1. Find a stock investing platform

To buy commodity ETFs on the ASX, you'll need to sign up to an investing platform with access to the Aussie stock market. There are several share investing platforms available, of which Stake is one.

2. Fund your account

Open an account by completing an application with your personal and financial details. Fund your account with a bank transfer, debit card or even Apple/Google Pay.

3. Search for the company or ticker symbol

Find the company name or ticker symbol. It is advised to conduct your own research to ensure you are purchasing the right investment product for your individual circumstances.

4. Set a market or limit order and buy the shares

Buy on any trading day using a market order, or a limit order to delay your purchase of the asset until it reaches your desired price. You may wish to look into dollar cost averaging to spread out your risk, which smooths out buying at consistent intervals.

5. Monitor your investment

Once you own the stock, you should monitor its performance. Check your portfolio regularly to ensure your investment is aligning with your financial goals.

What is the best-performing commodity ETF in Australia?

Over the past year, gold funds have been the best-performing commodity ETFs in Australia. Gold prices tend to climb during periods of uncertainty and fear, meaning outsized stock market volatility in 2025 has been bullish for the metal.

Moreover, looming tariffs have driven lots of cross-border gold trading, driving prices higher.

All three major ASX-listed gold funds have posted returns of roughly 51.50% over the past year.

While the VanEck Gold Bullion ETF ($NUGG) technically takes the crown as the best-performing fund at 51.80%, the Perth Mint Gold ETF ($PMGOLD) was a close second at 51.46%. Finally, the smaller Global X Physical Gold ($GOLD) also achieved a 51.46% return.

What are the risks of investing in commodities?

Investing in commodities has unique risks compared to other forms of investing. Commodities are often impacted by a wider range of factors than individual stocks or bonds. The price of oil, for instance, can be strongly affected by geopolitical tensions and the decisions of organizations like OPEC.

Moreover, when commodities fluctuate, they can swing sharply. As a result, commodity volatility tends to be higher than other asset classes. Finally, many commodities can only be effectively accessed through futures markets, which come with unique risks compared to spot markets.

Investing in commodity funds can potentially add valuable diversification to a portfolio. However, it’s important to understand the unique risks of this asset class.

Disclaimer

The information contained above does not constitute financial product advice nor a recommendation to invest in any of the securities listed. Past performance is not a reliable indicator of future performance. When you invest, your capital is at risk. You should consider your own investment objectives, financial situation and particular needs. The value of your investments can go down as well as up and you may receive back less than your original investment. As always, do your own research and consider seeking appropriate financial advice before investing.

Any advice provided by Stake is of general nature only and does not take into account your specific circumstances. Trading and volume data from the Stake investing platform is for reference purposes only, the investment choices of others may not be appropriate for your needs and is not a reliable indicator of performance.

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