There are five routes: physical metal (such as PMGOLD), miners (GDX), futures (BCOM, OOO), Australian resources shares (QRE, MVR) and themes like copper and uranium. Physical gold dominates, with about $12.7 billion invested. The past year split sharply: oil (OOO) returned +80.8% and copper miners (WIRE) +38.1%, while gold bullion was nearly flat at +1.9% and uranium miners fell about 15%.
Why the route matters as much as the commodity
"I want some gold" or "I want exposure to copper" sounds simple. But an ETF that holds gold bars, one that owns gold-mining companies and one that buys gold futures will all give you different results, sometimes wildly different.
- Physical metal tracks the price of the metal itself, less a fee. No earnings, no dividends, no company risk.
- Miners are companies. Their profits magnify moves in the metal price, so they tend to rise and fall harder, and they carry business risks like costs, debt and management.
- Futures are contracts to buy a commodity later. They are the only practical way to hold oil or a broad basket, but rolling contracts can add a cost or a benefit.
- Australian resources shares mean BHP, Rio Tinto, Woodside, Fortescue and the gold miners: companies most Australians already own through VAS.
- Themes such as copper, uranium, lithium and critical minerals hold global miners of one metal or group.
Money invested in each route
Route 1: physical metal
This is where most Australians start, and where most of the money sits. GOLD is the largest at $5.8 billion, while PMGOLD and GXLD are the cheapest at 0.15% a year. Silver (ETPMAG) and a precious metals basket (ETPMPM) are also available.
After a huge run, gold took a breather: physical gold ETFs returned just +1.7% to +1.9% over the past year, but +147% over five years (about 20% a year) for PMGOLD. Silver did better this year at +22.0%. Palladium is the cautionary tale, down 34.5% over five years. We cover the gold choices in detail in our gold and precious metals ETF guide.
Route 2: the miners
GDX holds about 110 global gold miners, led by Newmont, Agnico Eagle and Barrick. Because miners' costs are fairly fixed, a rising gold price flows straight to profit, which is why GDX returned +223.6% over five years against about +145% for gold itself. The same leverage works in reverse when the metal falls. MNRS is a currency-hedged alternative. See GDX vs MNRS.
Route 3: futures, for oil and broad baskets
You cannot store a barrel of oil in a vault, so oil ETFs use futures. OOO tracks crude oil futures, currency hedged, and returned +80.8% over the past year. It also charges 1.29% a year, and roll costs can eat into returns when markets are calm. BCOM spreads across energy, metals and farm commodities for 0.60%, returned +22.4% in a year and took in $50 million of new money in September alone. Both suit investors who understand futures and want short to medium-term exposure, more than a buy-and-forget core.
One year, five very different outcomes
Route 4: Australian resources shares
The ASX is one of the world's great resources markets, so you may already own plenty. Materials companies alone are about 26% of VAS, and our overlap check shows VAS and QRE are 28.8% the same.
The two main resources ETFs are built very differently. QRE weights companies by size, so BHP alone is about 40% of the fund. MVR caps each company, so Woodside, BHP, Northern Star, Santos and Rio Tinto sit between about 6% and 9% each. QRE suits investors comfortable with a big BHP bet; MVR suits those who want the sector without one company dominating. Compare MVR vs QRE and QRE vs OZR.
QRE is mostly BHP; MVR spreads the load
Route 5: themes, from copper to uranium
- Copper. WIRE ($916 million, 0.65%) holds global copper miners such as Teck, Southern Copper and Freeport-McMoRan. It returned +38.1% over the year and +124.8% over three years. See WIRE vs MNRS.
- Uranium. URNM and ATOM hold uranium miners and physical uranium trusts, including Cameco and NexGen. Both fell 15 to 19% over the past year. Uranium is a small, volatile market where sentiment swings hard. See URNM vs ATOM and the uranium ETFs page.
- Critical minerals. XMET mixes copper, rare earths and battery metals, with holdings such as Anglo American and Lynas, and returned +26.2% over the year. ACDC leans to battery technology and lithium. See the critical minerals ETFs page.
Thematic funds typically cost 0.65% to 0.69% a year, are concentrated in a few dozen companies, and many are small or only a few years old.
What $10,000 grew to by September 2026
How commodity ETFs fit in a portfolio
The past five years have been exceptional for commodities, and that is exactly when caution matters. Commodities move in long cycles, and periods like 2011 to 2015 saw many resources funds lose heavily. A few practical points:
- Gold is the one most investors treat as a long-term diversifier, because it often holds up when shares fall.
- Miners and themes are better seen as satellite positions: smaller, higher-risk, and reviewed regularly.
- Futures funds suit investors who understand roll costs and want a tactical position.
- Tax and income. Physical metal ETFs pay little or no income. Australian resources ETFs pay franked distributions, which can suit retirees and SMSFs in pension phase.
Browse every fund on the commodities and resources ETFs page, or see the gold and precious metals list.
Check how much resources exposure you already have →
Common questions
What is the best way to invest in commodities in Australia?
It depends on what you want. Physical ETFs like PMGOLD or GOLD track the metal price. Miner ETFs like GDX or WIRE magnify the moves. Australian resources ETFs like QRE or MVR give you local miners with franked distributions. Futures funds like BCOM cover oil and broad baskets.
Is QRE or MVR better?
They hold similar companies but QRE is about 40% BHP, while MVR caps each company. QRE returned +32.2% over the past year and MVR +24.9%; over five years they are close, at +84.4% and +90.3%.
Is there a copper ETF on the ASX?
Yes. WIRE holds global copper miners and is the largest at $916 million. CPPR is a newer, cheaper option at 0.39% a year. Neither holds physical copper.
Why did uranium ETFs fall when other commodities rose?
Uranium is a small, sentiment-driven market. URNM fell 15.0% and ATOM 18.9% in the year to 30 September 2026, even as copper and oil rallied. It shows how differently commodities can behave from one another.
Joshua Stega is a financial adviser with 20 years' experience and the founder of ETF Adviser. He built ReviewETF to make every Australian ETF easy to find and compare.
General information only. It does not take into account your objectives, financial situation or needs. Consider the PDS and TMD before investing. Past performance is not a reliable indicator of future performance. Data as at 30 September 2026.