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Commodities are among the best-performing asset classes of 2025. The Bloomberg Commodities Index, which tracks the total return of 24 major futures markets, gained 7.9% in the first quarter.

On a sector level, precious and industrial metals were the top performers, delivering returns of 15.2% and 12.5%, respectively. In the energy sector, natural gas showed notable strength, while crude oil and fuel products faced challenges. Meanwhile, the agriculture sector saw modest gains, as losses across grains were partially offset by gains in soft commodities and livestock.

We have highlighted the five best-performing commodity ETFs of the first quarter of 2025. These are United States Natural Gas Fund (UNG - Free Report) , United States Copper Index Fund (CPER - Free Report) , Franklin Responsibly Sourced Gold ETF (FGDL - Free Report) , abrdn Physical Silver Shares ETF (SIVR - Free Report) and GraniteShares Platinum Trust (PLTM - Free Report) .

We have highlighted some notable events or developments in the commodity world during the first quarter:

Gold's Record-Breaking Rally

Gold has been on a blistering rally this year, with gains of 19.3%. It hit 18 closing highs so far and logged its best performance since the third quarter of 1986. The bullion topped $3,100 per ounce for the first time ever and has further upside potential. 

Uncertainty surrounding U.S. President Donald Trump’s tariffs, coupled with geopolitical instability in the Middle East and Europe, has boosted demand for gold as a safe haven. Additionally, strong demand from central banks, expectations of interest rate easing by the Federal Reserve and strong flows into gold-backed ETFs added to the strength. Major financial institutions, including Goldman Sachs and Bank of America, have raised their gold price forecasts, anticipating continued gains fueled by trade-war tensions and central bank demand. 

Silver Shines

Silver has also been on the rise, following the yellow metal. Factors like monetary easing, a weakening dollar and industrial demand for solar and electronics are driving growth, with expectations for continued strength in 2025. Beyond its safe-haven appeal, silver benefits from its dual nature as both a precious and an industrial metal.

Copper: Hottest Commodity of 2025

Copper prices surged to a record high on tariff threats. President Donald Trump has threatened to impose tariffs on copper imports, leading to a proactive response from buyers. Fearing increased costs, U.S. companies accelerated their copper purchases to stockpile the metal before the enactment of any tariffs. Additionally, China's economic stimulus measures, supply chain constraints and a rush to build data centers, and the continued electrification of the global economy have been driving copper prices higher.

Natural Gas Shows Strength

Natural gas prices enjoyed a remarkable run, surging more than 13% in the first quarter of 2025, as a mix of cold weather, supply disruptions and global demand kept the market strong.

Agricultural Commodities Rebound

Agricultural commodities experienced a resurgence after nearly three years of decline. Grains such as corn and soybeans regained ground, while arabica coffee surged to new records. Severe drought conditions in Brazil and weather-related disruptions in Vietnam led to coffee prices surpassing $4 a pound for the first time. This rebound has injected fresh optimism into sectors like mining and agriculture, particularly in Australia. 

We have profiled the ETFs below:

United States Natural Gas Fund (UNG) – Up 28.5%

United States Natural Gas Fund tracks the daily changes in the price of natural gas delivered at the Henry Hub, LA, as measured by the daily changes in the price of UNG’s Benchmark Futures Contract. UNG’s Benchmark Futures Contract is the futures contract on natural gas as traded on the NYMEX, which is the near-month contract that is about to expire. If the near-month contract is within two weeks of expiration, the Benchmark will be the next month contract to expire.

United States Natural Gas Fund has an AUM of $434.4 million and trades in a volume of 7 million shares per day. UNG has an expense ratio of 1.01% 

United States Copper Index Fund (CPER) – Up 25.6%

United States Copper Index Fund seeks to track the performance of the SummerHaven Copper Index Total Return. The index is designed to reflect the performance of the investment returns from a portfolio of copper futures contracts on the COMEX exchange. United States Copper Index Fund has accumulated $205.3 million in its asset base and charges 1.04% in annual fees. It trades in an average volume of 165,000 shares a day and has a Zacks ETF Rank #3 (Hold) with a High risk outlook.

Franklin Responsibly Sourced Gold ETF (FGDL) – Up 19.2%

Franklin Responsibly Sourced Gold ETF seeks to reflect the performance of the price of gold bullion. It has AUM of $184.3 million and charges 15 bps in annual fees. Franklin Responsibly Sourced Gold ETF trades in an average daily volume of 85,000 shares and has a Zacks Rank #3. 

abrdn Physical Silver Shares ETF (SIVR) – Up 17.9%

abrdn Physical Silver Shares ETF tracks the performance of the price of silver, less Trust expenses. It has an AUM of $1.6 billion and trades in a good volume of around 638,000 shares per day on average. SIVR has an expense ratio of 0.30% and a Zacks Rank #3.

GraniteShares Platinum Trust (PLTM) – Up 10.1%

GraniteShares Platinum Trust tracks the performance of the price of platinum and is physically backed in a vault domiciled in London, United Kingdom. It has AUM of $50 million and charges 50 bps in annual fees. The fund trades in an average daily volume of 87,000 shares.

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