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

Designed to provide broad exposure to the Precious Metals ETFs category of the market, the Invesco DB Precious Metals ETF (DBP) is a smart beta exchange traded fund launched on 01/05/2007.What Are Smart Beta ETFs?Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.Fund Sponsor & IndexThe fund is sponsored by Invesco. It has amassed assets over $235.44 million, making 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 ExpensesExpense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.Operating expenses on an annual basis are 0.73% for this ETF, which makes it one of the more expensive products in the space.The fund has a 12-month trailing dividend yield of 2.72%.Sector Exposure and Top HoldingsETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.Looking at individual holdings, Comex Gold 100 Troy Ounces Future-12-29-2025 (GCZ5) accounts for about 80.4% of total assets, followed by Invesco Government & Agency Portfolio (AGPXX) and Comex Silver Future-12-29-2025 (SIZ5).DBP's top 10 holdings account for about 177.76% of its total assets under management.Performance and RiskYear-to-date, the Invesco DB Precious Metals ETF has added roughly 54.92% so far, and it's up approximately 51.24% over the last 12 months (as of 11/20/2025). DBP has traded between $60.30 $100.25 in this past 52-week period. The fund has a beta of 0.13 and standard deviation of 17.56% for the trailing three-year period, which makes DBP a medium risk choice in this particular 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 $2.12 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