Commodity ETFs
Commodity funds make it easy to own gold, oil or a basket of raw materials. But how a fund holds its exposure changes its returns, risks and taxes. Here is how to tell them apart.
Three main structures
| Type | Example | How it works | Watch for |
|---|---|---|---|
| Physical | Gold fund (GLD) | Holds metal in vaults | Taxed as a collectible when sold at a gain |
| Futures-based | Oil fund (USO), broad fund (DBC) | Holds futures and rolls them | Roll costs; some issue K-1 tax forms |
| Equity | Miner or energy stock funds | Holds company shares | Business risk on top of commodity moves |
General features; read each fund’s prospectus.
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