You buy futures: contracts that expire and must be swapped ("rolled") every month. That swap can add or subtract a lot, even if the commodity does not move. Here you see it with real data.
Same kind of fund, opposite results. Oil was in "backwardation" (future contracts cheaper than the current one): rolling ADDED. Gas was in "contango" (futures more expensive): rolling SUBTRACTED every month.
Total return (with distributions). "Gap" = fund − commodity over 5 years: what roll, collateral interest and fees added or took away. Updated: Oct 25, 2026
| Fund | Tracks | Structure | Annual fee | Assets | Fund 1 yr | Fund 5 yrs | Commodity 5 yrs | Gap 5 yrs |
|---|---|---|---|---|---|---|---|---|
| USO | WTI crude oil | Pool · K-1 | 0.86% | $1.7 B | +140% | +193% | +23% | +170% |
| BNO | Brent crude oil | Pool · K-1 | 1.15% | $646 M | +146% | +215% | +30% | +185% |
| UNG | Natural gas | Pool · K-1 | 1.17% | $458 M | -27% | -88% | -48% | -40% |
| UGA | Gasoline | Pool · K-1 | 1.08% | $190 M | +129% | +231% | +24% | +207% |
| CPER | Copper | Pool · K-1 | 0.88% | $713 M | +26% | +41% | +43% | -2% |
| GLD | Physical gold in a vault | Physical metal | 0.40% | $141.7 B | -3% | +117% | +122% | -5% |
| SLV | Physical silver in a vault | Physical metal | 0.50% | $30.0 B | +11% | +114% | +120% | -5% |
| CORN | Corn | Pool · K-1 | 1.00% | $130 M | +1% | -13% | -15% | +2% |
| WEAT | Wheat | Pool · K-1 | 1.00% | $284 M | +13% | -39% | -18% | -21% |
| SOYB | Soybeans | Pool · K-1 | 1.00% | $45 M | +22% | +23% | +2% | +22% |
| DBA | Agriculture basket | Pool · K-1 | 0.85% | $1.4 B | +7% | +65% | — | — |
| DBC | 14-commodity basket | Pool · K-1 | 0.85% | $1.9 B | +57% | +80% | — | — |
| GSG | S&P GSCI index (energy-heavy) | Pool · K-1 | 0.75% | $1.0 B | +65% | +109% | — | — |
| PDBC | Diversified basket, no K-1 | 1940 Act · 1099 | 0.59% | $7.7 B | +58% | +78% | — | — |
| BCI | Bloomberg Commodity index, no K-1 | 1940 Act · 1099 | 0.26% | $3.5 B | +40% | +61% | — | — |
| DBMF | Managed futures: trend-following | 1940 Act · 1099 | 0.85% | $5.2 B | +21% | +58% | — | — |
| KMLM | Managed futures: trend-following | 1940 Act · 1099 | 0.90% | $549 M | +21% | +26% | — | — |
Pick a fund. The gold line is the fund; the grey one, the commodity (nearest contract).
Suppose the commodity does NOT move all year. What would the fund do?
A vehicle that pools many investors' money to trade commodity futures. It is run by an operator registered with the CFTC and NFA. Many commodity ETFs (USO, UNG, DBC) are pools.
A future is a contract to buy the commodity on a date. Before it expires, the fund sells it and buys the next one. That is the roll.
Later contracts cost more than the near one. When rolling, you sell cheap and buy expensive: you lose a little every month (UNG suffered it for years).
Later contracts cost less. When rolling, you sell high and buy low: you gain a little every month (USO benefited from 2021 to 2026).
The fund posts only part as margin; the rest sits in Treasury bills that pay interest. With high rates, that interest helps.
Funds that buy or sell futures following trends (DBMF, KMLM). They seek low correlation with stocks, especially in long sell-offs.
Believing the fund tracks the price in the news; ignoring roll and fees; treating them as "buy and forget"; being surprised by a K-1 at tax time; confusing a pool with owning physical metal.
Strategic commodities (copper, uranium, rare earths) are part of the "follow public money" thesis. Note: the best-known uranium and rare-earth ETFs (URA, URNM, REMX) buy mining stocks, not futures.
Educational content, not financial or tax advice: ask a tax professional about K-1, 1099 and the 60/40 rule. Data: Yahoo Finance (total return; commodity = nearest continuous futures contract).