Broad commodities ETFs rally 24.4% in Q1 2026, gaining investor interest for diversification beyond stocks and bonds.

In the first quarter of 2026, broad commodities ETFs saw a 24.4% gain, driven mainly by energy prices after the Strait of Hormuz closure sparked supply concerns. These ETFs offer diversified exposure across sectors like energy, agriculture, and metals, helping investors reduce risk compared to single commodities. Different ETFs use varied strategies, from equal weighting to active futures management, and most now avoid the complex K-1 tax form, making them more accessible. Advisors recommend allocating 5% to 15% of portfolios to these funds to capture diversification benefits, especially as equities show only modest discounts and traditional stocks and bonds face correlated risks.