Launched on 01/05/2007, the Invesco DB Precious Metals ETF (DBP Quick QuoteDBP - Free Report) is a smart beta exchange traded fund offering broad exposure to the Precious Metals ETFs category of the market.

What Are Smart Beta ETFs?

The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.

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

But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.

Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.

Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.

Fund Sponsor & Index

DBP is managed by Invesco, and this fund has amassed over $208.33 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

Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.

With one of the most expensive products in the space, this ETF has annual operating expenses of 0.76%.

It's 12-month trailing dividend yield comes in at 3.07%.

Sector Exposure and Top Holdings

Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.

Looking at individual holdings, Comex Gold 100 Troy Ounces Future-12-29-2025 (GCZ5) accounts for about 80.68% of total assets, followed by Invesco Government & Agency Portfolio (AGPXX) and Comex Silver Future-12-29-2025 (SIZ5).

The top 10 holdings account for about 182.3% of total assets under management.

Performance and Risk

The ETF has gained about 37.44% so far this year and it's up approximately 37.83% in the last one year (as of 09/18/2025). In the past 52-week period, it has traded between $60.30 and $84.47

The ETF has a beta of 0.14 and standard deviation of 16.98% for the trailing three-year period, making it a medium risk choice in the space. With about 5 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 $1.67 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.