Is Invesco DB Precious Metals ETF (DBP) a Strong ETF Right Now?

Launched on 01/05/2007, the Invesco DB Precious Metals ETF (DBP) is a smart beta exchange traded fund offering broad exposure to the Precious Metals ETFs category of the market.What Are Smart Beta ETFs?The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.Fund Sponsor & IndexDBP is managed by Invesco, and this fund has amassed over $208.33 million, which makes it one of the average sized ETFs in the Precious Metals ETFs. DBP, before fees and expenses, seeks to match the performance of the DBIQ Optimum Yield Precious Metals Index Excess Return.The DBIQ Optimum Yield Precious Metals Index Excess Return Index is a rules-based index composed of futures contracts on two of the most important precious metals?gold and silver. The index is intended to reflect the performance of the precious metals sector.Cost & Other ExpensesSince cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.With one of the most expensive products in the space, this ETF has annual operating expenses of 0.76%.It's 12-month trailing dividend yield comes in at 3.07%.Sector Exposure and Top HoldingsEven though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.Looking at individual holdings, Comex Gold 100 Troy Ounces Future-12-29-2025 (GCZ5) accounts for about 80.68% of total assets, followed by Invesco Government & Agency Portfolio (AGPXX) and Comex Silver Future-12-29-2025 (SIZ5).The top 10 holdings account for about 182.3% of total assets under management.Performance and RiskThe ETF has gained about 37.44% so far this year and it's up approximately 37.83% in the last one year (as of 09/18/2025). In the past 52-week period, it has traded between $60.30 and $84.47The ETF has a beta of 0.14 and standard deviation of 16.98% for the trailing three-year period, making it a medium risk choice in the space. With about 5 holdings, it has more concentrated exposure than peers .AlternativesInvesco DB Precious Metals ETF is a reasonable option for investors seeking to outperform the Precious Metals ETFs segment of the market. However, there are other ETFs in the space which investors could consider.abrdn Physical Precious Metals Basket Shares ETF(GLTR) tracks Precious Metals Basket The fund has $1.67 billion in assets. GLTR has an expense ratio of 0.60%.Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Precious Metals ETFsBottom LineTo learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.Boost Your Portfolio with Our Top ETF InsightsZacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.Don’t miss out on this valuable resource. It’s free!Get it now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Invesco DB Precious Metals ETF (DBP): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks