Diversified commodity ETFs rise over 32% amid inflation, offering key portfolio inflation hedges.

Diversified commodity ETFs like HGER, DBC, and PDBC have gained over 32% in the past year, driven by rising commodity prices amid persistent inflation. These ETFs provide direct exposure to futures in energy, metals, and agriculture, making them effective inflation hedges compared to equities. HGER actively tilts towards inflation-sensitive commodities like gold and refined energy, while DBC and PDBC offer broad, rules-based exposure with PDBC favored for tax simplicity in retail accounts. Investors should consider holding 5-10% in commodities for inflation protection but be aware of potential volatility during recessions.