This commodity ETF tracks price movements by investing in industrial metals futures such as aluminum, zinc, and copper. By holding futures on industrial metals that are widely used across industrial activity, it gives investors exposure to the industrial metals price cycle.

It suits investors who want diversified exposure to industrial metals and can tolerate the volatility of the commodity cycle and the risks of the futures structure.

It is a passive (index-tracking) ETF managed by Invesco.

The fund tracks an index made up of industrial metals futures such as aluminum, zinc, and copper. It holds futures on industrial metals that are widely used across industrial activity, and it is also affected by the shape of the futures curve when contracts are rolled to later expirations. The structure exposes investors to the industrial metals price cycle and the broader economic cycle.

• Diversified across industrial metals futures
• Exposure to the industrial metals price cycle

Assets under management (AUM) stand at $324.3M, and the Expense Ratio is 0.75% per year.

Compared with precious metals ETFs and mining company ETFs, the main point of comparison is its direct investment in industrial metals futures.

Industrial metals depend on the global economy, industrial demand, the supply environment, and the strength of the dollar. They tend to be strong when economic recovery and industrial demand are in focus and weak when the economy slows. When the futures curve is in contango, costs can arise when contracts are rolled.

Fund flows into industrial metals products vary with the economic outlook, industrial demand, and the supply environment, and money sometimes moves into related products when expectations for an economic recovery or for electrification and power grid demand grow. It is also worth noting that performance can differ greatly depending on the economic cycle and the futures curve.

Industrial metals diversification and cyclical upside are both strengths and risks, and economic sensitivity, futures roll costs, and the lack of dividends are points to consider.

For exposure to copper mining companies, direct substitutes include COPX, and for broader metals and mining companies, products such as PICK are also worth comparing. For diversified commodities that include energy, a product such as DBC can be considered as well. The three products shown in the table, GLTR, DBP, and EVMT, invest in precious metals and electric vehicle metals respectively, so the types of metals differ. This ETF's differentiator is its narrower exposure to industrial metals futures.

Here are the points to review before investing in DBB. Industrial metals diversification is appealing, but economic sensitivity, futures roll costs, and the lack of dividends need to be checked in advance. It is also a good idea to compare it with precious metals and mining company products.

Weaker industrial demand from a global economic slowdown and roll costs from a contango futures curve are the main short-term performance variables, and industrial metals depend heavily on the economic cycle. Losses can occur during an economic slowdown.

This is a suitable candidate for investors who want diversified exposure to industrial metals. For exposure to mining companies, consider products such as COPX and PICK, and for direct exposure to industrial metals futures, it is advisable to compare this product alongside them before choosing.