Content and data provided by various third parties and Fidelity − Terms of Use | Help/Glossary
Research > ETFs > ETF / ETP Commentary > 

For Real Diversification, Consider This Commodities ETF

BY | ETF Database
7:24 am ET 09/22/26 | 12 VIEWS
Helped by fresh demand drivers from the world of artificial intelligence (AI), among other catalysts, there’s ample talk that a new commodities supercycle is afoot. This could potentially give rise to ETFs such as the USCF SummerHaven Dynamic Commodity Strategy No K-1 Fund (SDCI A).Another reason to consider commodities, particularly in the broad fashion offered by SDCI, is that the asset class continues living up to its reputation as credible portfolio diversifier. That indicates an ETF such as SDCI can serve long-term investors well. “Rather than trying to predict a commodity supercycle, investors should focus on building long-term portfolios that can help offset inflation, offer low correlations with equities and bonds, and deliver adequate return potential," noted Nationwide. “Arguably, broad-based commodity exposure may satisfy all three conditions, especially the return objective.”Solving the Correlation ConundrumFor generations, investors were taught the benefits of diversification. Many have taken that to mean that they can improve the risk/return of their portfolios by including multiple asset classes. Hence the long-running affinity for the 60% equities/40% fixed income portfolio structure. However, there’s evidence indicating that, in some years, including some recent occasions, bonds’ correlations to stocks ran high, diminishing fixed income’s diversification properties. Underscoring the case for ETFs like SDCI, commodities have maintained their low correlations to traditional asset classes. “This dynamic is important when thinking about diversification; both equity and bond prices have been declining in parallel, eroding the protective role fixed income typically plays in a diversified portfolio,” added Nationwide. To be sure, commodities and ETFs such as SDCI are not risk-free bets. But these assets merit inclusion in portfolios because, as has been seen in recent years, commodities can generate significant upside appreciation while accomplishing the objective of credible portfolio diversification. “Commodities have historically exhibited lower correlations with stocks and bonds, making them a potentially valuable source of diversification. While not without risks, commodities appear well-positioned to benefit from a highly fragmented economic backdrop, offering investors the opportunity to access diversified sources of return and enhance portfolio resilience,” concluded Nationwide. The $795.2 million SDCI is diverse in its own right, as the fund features exposure to agriculture, energy, and soft commodities as well as industrial and precious metals. SDCI holdings range in weights of 5.85% to 8.24%. The ETF’s annual fee is 0.60%, or $60 on a $10,000 investment. For more news, information, and analysis, visit the ETF Building Blocks Content Hub.

More Commentary

GOIB: Big Income on 1 of Berkshires Favorite Stocks
BY | ETF Database
5:15 am ET 09/22/26 | 36 VIEWS
Adding Municipals? 3 Muni ETFs That Have Led Over 3 Years
BY | ETF Database
8:53 am ET 09/22/26 | 0 VIEWS
Staples ETF Widens Gap Over Discretionary in 2026
BY | ETF Database
8:30 am ET 09/22/26 | 2 VIEWS
View more Commentary

Search Commentary

Enter Keyword(s)
Filter Results

Performance data shown is past performance and is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. Yield and return will vary, therefore you have a gain or loss when you sell your shares. For standard quarterly performance, go to the fund's Snapshot page by clicking on the ETF/ETP's symbol.

ETFs may trade at a premium or discount to their NAV and are subject to the market fluctuations of their underlying investments.

For iShares ETFs, Fidelity receives compensation from the ETF sponsor and/or its affiliates in connection with an exclusive long-term marketing program that includes promotion of iShares ETFs and inclusion of iShares funds in certain FBS platforms and investment programs. Please note, this security will not be marginable for 30 days from the settlement date, at which time it will automatically become eligible for margin collateral. Additional information about the sources, amounts, and terms of compensation can be found in the ETF's prospectus and related documents. Fidelity may add or waive commissions on ETFs without prior notice. BlackRock and iShares are registered trademarks of BlackRock, Inc. and its affiliates.

FBS receives compensation from the fund's advisor or its affiliates in connection with a marketing program that includes the promotion of this security and other ETFs to customers ("Marketing Program"). The Marketing Program creates incentives for FBS to encourage the purchase of certain ETFs. Additional information about the sources, amounts, and terms of compensation is in the ETF's prospectus and related documents. Please note that this security will not be marginable for 30 days from the settlement date, at which time it will automatically become eligible for margin collateral.

News, commentary (including "Related Symbols") and events are from third-party sources unaffiliated with Fidelity. Fidelity does not endorse or adopt their content. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use.

Any data, charts and other information provided on this page are intended to help self-directed investors evaluate exchange traded products (ETPs), including, but limited to exchange traded funds (ETFs) and exchange traded notes (ETNs). Criteria and inputs entered, including the choice to make ETP comparisons, are at the sole discretion of the user and are solely for the convenience of the user. Analyst opinions, ratings and reports are provided by third-parties unaffiliated with Fidelity. All information supplied or obtained from this page is for informational purposes only and should not be considered investment advice or guidance, an offer of or a solicitation of an offer to buy or sell a particular security, or a recommendation or endorsement by Fidelity of any security or investment strategy. Fidelity does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating ETPs. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use. Determine which securities are right for you based on your investment objectives, risk tolerance, financial situation and other individual factors and re-evaluate them on a periodic basis.

Before investing in any exchange traded product, you should consider its investment objective, risks, charges and expenses. Contact Fidelity for a prospectus, offering circular or, if available, a summary prospectus containing this information. Read it carefully.