The Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF (PDBC) is standing out from its commodities ETFs peers as it continues to accrete strong inflows.
PDBC has garnered $232 million in net flows year to date. With $6.5 billion in assets under management, the fund is the largest commodities ETF available to investors, according to ETF Database. Over one year, the active ETF has hauled in $1.3 billion in net flows.
The strong inflows entering PDBC are unique to the fund; notably, other commodities ETFs are not currently seeing the same strong interest from investors. The second largest commodities ETF, the First Trust Global Tactical Commodity Strategy Fund (FTGC), has seen just $5 million in net flows year to date.
2022 marked the second consecutive year that commodities was the top-performing asset class. However, despite the impressive recent record, fundamentals for the asset class remain constructive. Economists expect commodities to return 43% this year, according to a December report published by Goldman Sachs.
PDBC offers exposure to commodity futures without the tax hassle of a K-1, which any advisors avoid. The fund’s actively managed structure allows it to better avoid negative roll yield, a problem of passive commodities ETFs that can eat at returns over time.
As of December 31, the fund offers exposure to gasoline, crude oil, brent crude, gold, copper, aluminum, soybeans, wheat, natural gas, zinc, sugar, corn, and silver.
PDBC has gained 2.64% year to date, outperforming the Bloomberg Commodity Index’s increase of 0.05% during the same period. Over one year, PDBC has gained 15.57% while the benchmark index has climbed 9.32%. Over three years, PDBC and the index have increased 66.44% and 47.74%, respectively.
PDBC charges 62 basis points.
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