The Invesco DB Precious Metals ETF (DBP Quick QuoteDBP - Free Report) made its debut on 01/05/2007, and is a smart beta exchange traded fund that provides broad exposure to the Precious Metals ETFs category of the market.

What Are Smart Beta ETFs?

Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.

Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.

On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.

These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.

Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.

Fund Sponsor & Index

DBP is managed by Invesco, and this fund has amassed over $248.48 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 Expenses

Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.

Operating expenses on an annual basis are 0.70% for DBP, making it one of the more expensive products in the space.

DBP's 12-month trailing dividend yield is 2.62%.

Sector Exposure and Top Holdings

Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.

Taking into account individual holdings, Invesco Government & Agency Portfolio (AGPXX) accounts for about 89.33% of the fund's total assets, followed by Comex Gold 100 Troy Ounces Future-12-29-2026 (GCZ6) and Comex Silver Future-12-29-2026 (SIZ6).

DBP's top 10 holdings account for about 205.41% of its total assets under management.

Performance and Risk

Year-to-date, the Invesco DB Precious Metals ETF has lost about -7.08% so far, and was up about 10.25% over the last 12 months (as of 10/01/2026). DBP has traded between $88.78 $136.43 in this past 52-week period.

The ETF has a beta of 0.24 and standard deviation of 24.71% for the trailing three-year period, making it a medium risk choice in the space. With about 7 holdings, it has more concentrated exposure than peers .

Alternatives

Invesco 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 $2.55 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 ETFs

Bottom Line

To 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.