How to Evaluate Invesco DB Precious Metals ETF (DBP) for Your Portfolio

Precious metals have long been considered a defensive asset class, and the Invesco DB Precious Metals ETF (DBP) offers investors a way to gain exposure to this market segment. But is this particular fund worth your attention? Let’s break down what makes DBP tick and how it stacks up against alternatives.

Performance: Strong Recent Gains With Notable Volatility

DBP has delivered impressive returns in recent periods. Year-to-date performance reached approximately 54.92%, with the fund climbing roughly 51.24% over the past 12 months as of November 20, 2025. The 52-week trading range of $60.30 to $100.25 reflects the dynamic nature of precious metals markets.

However, strong returns come with risk considerations. The fund carries a beta of 0.13 and a standard deviation of 17.56% over the trailing three-year period, positioning it as a medium-risk choice within its category. For investors tracking precious quotes and market volatility, this volatility profile is an important factor in portfolio construction.

Understanding the Fund’s Structure

Launched on January 5, 2007, DBP is structured as a smart beta exchange-traded fund managed by Invesco. The fund tracks the DBIQ Optimum Yield Precious Metals Index Excess Return, which holds futures contracts on two primary precious metals: gold and silver. This index-based approach differs from traditional market cap-weighted strategies by applying rules-based selection methodologies.

DBP has accumulated over $235.44 million in assets, making it a moderately-sized player in the precious metals ETF space.

What’s Actually Inside the Fund?

The fund’s concentrated portfolio consists of approximately 5 holdings. Gold futures (specifically Comex Gold 100 Troy Ounces Future-12-29-2025) represent about 80.4% of assets, while silver futures and other precious metals positions round out the allocation. Notably, the top 10 holdings account for approximately 177.76% of total assets, indicating leveraged positions common in futures-based strategies.

The Cost Question: Is It Worth the Price?

One significant consideration is DBP’s annual operating expense ratio of 0.73%, which places it on the higher end for precious metals ETFs. Combined with a 12-month trailing dividend yield of 2.72%, investors should carefully evaluate whether the fund’s performance justification warrants these costs.

In the ETF landscape, expense ratios directly impact long-term returns. Lower-cost alternatives can materially outperform more expensive products over extended periods when holding similar assets.

Alternative Options to Consider

DBP isn’t the only way to access precious metals exposure. The abrdn Physical Precious Metals Basket Shares ETF (GLTR) offers a compelling alternative, managing $2.12 billion in assets with a lower 0.60% expense ratio. This fund provides exposure to the precious metals basket at a reduced cost structure.

Traditional market cap-weighted precious metals ETFs also exist for investors seeking to replicate market returns with minimal complexity and lower fees.

Making Your Decision

For investors specifically seeking exposure to precious metals with a rules-based approach, DBP presents a viable option. The recent performance metrics are noteworthy, and the fund’s structure offers differentiated exposure compared to conventional products.

However, the higher expense ratio warrants consideration against alternatives, particularly for long-term investors who benefit from lower-cost index tracking. Evaluate DBP alongside competing funds and ensure the cost structure aligns with your expected holding period and performance expectations. Your overall portfolio strategy and risk tolerance should ultimately guide this decision.