Designed to provide broad exposure to the Precious Metals ETFs category of the market, the Invesco DB Precious Metals ETF (DBP) is a smart beta exchange traded fund launched on 01/05/2007.

What Are Smart Beta ETFs?

Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.

Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.

However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.

Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.

The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.

Fund Sponsor & Index

The fund is sponsored by Invesco. It has amassed assets over $238.74 million, making it one of the average sized ETFs in the Precious Metals ETFs. Before fees and expenses, DBP seeks to match the performance of the DBIQ Optimum Yield Precious Metals Index Excess Return.

The DBIQ Optimum Yield Precious Metals Index Excess Return Index is a rules-based index composed of futures contracts on two of the most important precious metals?gold and silver. The index is intended to reflect the performance of the precious metals sector.

Cost & Other Expenses

Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.

Annual operating expenses for DBP are 0.70%, which makes it one of the more expensive products in the space.

It's 12-month trailing dividend yield comes in at 2.70%.

Sector Exposure and Top Holdings

It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.

Taking into account individual holdings, Invesco Government & Agency Portfolio (AGPXX) accounts for about 86.68% of the fund's total assets, followed by Comex Gold 100 Troy Ounces Future-12-29-2026 (GCZ6) and Comex Silver Future-12-29-2026 (SIZ6).

The top 10 holdings account for about 200.59% of total assets under management.

Performance and Risk

The ETF has lost about -9.8% so far this year and it's up approximately 24.91% in the last one year (as of 07/30/2026). In the past 52-week period, it has traded between $74.95 and $136.43

The ETF has a beta of 0.23 and standard deviation of 23.96% for the trailing three-year period, making it a medium risk choice in the space. With about 7 holdings, it has more concentrated exposure than peers .

Alternatives

Invesco DB Precious Metals ETF is a reasonable option for investors seeking to outperform the Precious Metals ETFs segment of the market. However, there are other ETFs in the space which investors could consider.

abrdn Physical Precious Metals Basket Shares ETF(GLTR) tracks Precious Metals Basket The fund has $2.47 billion in assets. GLTR has an expense ratio of 0.60%.

Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Precious Metals ETFs

Bottom Line

To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit

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Invesco DB Precious Metals ETF (DBP): ETF Research Reports

This article originally published on Zacks Investment Research (zacks.com).

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