Expanding the commodities conversation
Part one of the Aberdeen Investments Commodities Research Series, this installment offers timely insights for advisors and investors seeking to better understand the evolving role of commodities in modern portfolios.
Part 1 of
Commodities research series
Duration: 6 Mins
Date: Feb 05, 2026
Key findings
- Despite rising interest, most investors remain under-allocated to commodities, with average portfolio exposure at just 4.6% – well below levels that research suggests may enhance diversification and resilience.
- Nearly two-thirds of advisors say clients lack a clear understanding of how commodities support portfolio goals, and over 40% find commodities harder to explain than other asset classes – highlighting a persistent conversation gap.
- Commodities offer more than just diversification: they provide potential inflation protection, exposure to global megatrends, daily liquidity, and resilience during geopolitical disruptions.
- ETFs remain the preferred vehicle for commodity exposure, offering simplicity, transparency, and flexibility for both strategic and tactical allocations – making implementation more accessible than ever.
After a standout year for precious metals – particularly gold and silver – and renewed focus on portfolio resilience, many advisors are reassessing the role of commodities. Interest is clearly rising. 41% of advisors plan to increase allocations in 2026 (Chart 1).
Chart 1. Planned alternatives changes for the next 12 months
Yet, on average, commodities account for just 4.6% of client portfolios (Chart 2).
Chart 2. Surveyed advisors’ current commodities allocations
This gap between conviction and implementation presents a central challenge for both advisors and clients: commodities are increasingly viewed as important, but they are still not fully integrated into most portfolios.
A foundational, yet underrepresented asset class
Commodities are the physical inputs behind modern economic activity. Energy powers transportation and data centers. Agricultural markets sustain food systems. Industrial metals enable electrification, infrastructure, and digitalization. Despite this central role, commodities remain underrepresented in client portfolios. They are often treated as peripheral diversifiers rather than as core building blocks of long-term asset allocation. Independent research reinforces this disconnect. Bloomberg analysis suggests that commodity allocations in the range of approximately 4% to 9% may enhance portfolio efficiency in traditional multi-asset frameworks. Yet most investors remain well below this range. The result is a persistent structural under-allocation to assets that underpin everyday economic life.
The conversation gap
Our survey of 300 US financial advisors highlights why this gap persists.
In a recent survey conducted by Aberdeen Investors in partnership with CoreData Research, where we surveyed 300 US financial advisors, nearly two-thirds reported that clients lack a clear understanding of how commodities support portfolio objectives.1 Over 40% say commodities are harder to explain than other asset classes (Chart 3). As a result, most client discussions focus narrowly on diversification, while broader benefits are rarely emphasized.
Chart 3. Surveyed advisors usage of commodities
This limited framing constrains adoption. Commodities are discussed but not fully contextualized within the client goals around inflation resilience, income stability, or long-term growth.
Expert perspective
For deeper, timelier insights into the commodities and precious metals market, explore the monthly commentary from Robert Minter, Aberdeen Investments' Director of ETF Investment Strategy.
An evolving geopolitical backdrop
The global environment is also reshaping how commodity markets function.
Rising geopolitical tensions and the re-emergence of resource nationalism are altering supply dynamics across energy, metals, and agricultural markets. Governments are increasingly prioritizing domestic control, strategic reserves, and supply security.
Export restrictions, local-content rules, and state involvement in production have become more common. As a result, pricing is increasingly influenced by political decisions and national priorities, not just cyclical supply and demand.
For investors, this adds another structural dimension to the case for sustained exposure.
Education as a long-standing strategic priority
For many years, Aberdeen Investments has invested significant resources in advisor education, developing research, market commentary, and practical tools designed to help advisors understand how commodities behave across market cycles and how they can contribute to portfolio outcomes.
Our survey results reinforce the importance of this long-term commitment.
Advisors continue to seek frameworks that help them:
- Explain how commodities behave across economic cycles
- Connect real assets to inflation and purchasing-power risk
- Discuss geopolitical and supply-chain dynamics
- Position allocations within broader portfolio objectives
Rather than pointing to a new educational agenda, the findings validate the value of sustained, consistent investment in education and engagement.
ETFs, benchmarks, and practical implementation
Most advisors already prefer exchange-traded funds (ETF) for commodities exposure. When chosen correctly, these vehicles offer transparency, liquidity, and operational simplicity, making them well suited for both strategic and tactical use.
For many investors – 56%, according to our survey – broad exposure tied to established benchmarks, such as the Bloomberg Commodity Index, provides a disciplined foundation for long-term allocations (Chart 4).2 These benchmarks are among the most widely followed in the industry and reflect diversified exposure across energy, metals, and agriculture.
Chart 4. Paths to commodities exposure for clients
Importantly, index-based approaches that maintain consistent exposure, rather than actively shifting in and out of individual commodities, may be better positioned to capture unexpected inflation shocks, which are often driven by sudden moves in underlying commodity prices.
By avoiding discretionary timing decisions, benchmark-linked strategies help ensure that portfolios remain exposed when inflation pressures emerge unexpectedly.
Expanding the narrative
To fully realize the potential of commodities, client conversations must move beyond a single-benefit framework. Therefore, in addition to diversification, commodities can support:
- Downside protection and inflation hedging. Particularly during supply-driven price spikes. With 70% of advisors prioritizing downside protection and 24% focusing on inflation protection, commodities can play a key role in addressing these concerns – yet few advisors currently highlight these benefits in client discussions.
- Daily liquidity and transparency. Unlike many alternative assets, commodities – especially via ETFs – offer daily liquidity and transparency. This is particularly relevant as 61% of advisors prefer liquid alternatives for new allocations.
- Exposure to structural growth themes. Commodities are driven by powerful global trends such as deglobalization, infrastructure investment, the rise of AI, and the energy transition. While 55% of advisors recognize these as long-term tailwinds, only 20% mention them in client conversations – suggesting a missed opportunity to connect commodities to compelling macro narratives.
- Resilience to geopolitical disruption. Commodities often respond differently to global events than traditional assets. During periods of geopolitical tension or supply chain shocks, certain commodities – such as energy, agricultural goods, or precious metals – can act as effective hedges, helping to stabilize portfolios when other markets are under pressure.
When these dimensions are incorporated into client discussions, commodities become easier to position as a strategic portfolio component rather than a tactical allocation.
From niche to mainstream
Our research suggests the foundation for broader adoption is already in place. Advisor interest is growing. Implementation tools are widely available. Clients are increasingly aware of macroeconomic and geopolitical risks. The next stage of development will be driven by education, consistent messaging, and strong analytical frameworks, areas where sustained investment and long-term engagement matter most. By helping advisors connect market structure, portfolio construction, and client outcomes, the industry can reposition commodities from niche allocation to enduring portfolio tool. At Aberdeen Investments, we believe our role is to support that transition, through research-driven insights, benchmark-based implementation, and a long-standing commitment to advisor education.
Endnotes
1 CoreData is a global specialist market research consultancy and unique collaboration of experienced research, marketing, industry, and media professionals.
2 The Bloomberg Commodity Index (BCOM) is a leading benchmark that provides broad-based exposure to commodities that tracks the prices of 24 exchange-traded futures on physical commodities, representing 25 constituents across five commodity sectors, and is designed to minimize concentration in any one commodity or sector.
Methodology
This survey was conducted by CoreData Research for Aberdeen Investments in October–November 2025. It captures responses from 300 U.S. financial advisors representing $116 billion in client assets. The online survey included a mix of independent advisors, broker-dealers, RIAs, and wirehouse professionals. All data was anonymized and aggregated to ensure unbiased, reliable insights into advisor allocation trends and attitudes toward commodities and global megatrends to present a clear path forward for policymakers, decision-makers, and portfolio allocators.
Important information
The statements and opinions expressed are those of the author and are as of the date of this report. All information is historical and not indicative of future results and subject to change. Reader should not assume that an investment in any securities and/or precious metals mentioned was or would be profitable in the future. This information is not a recommendation to buy or sell. Past performance is not a guide to future results.
The abrdn Silver ETF Trust, abrdn Gold ETF Trust, abrdn Platinum ETF Trust, abrdn Palladium ETF Trust and abrdn Precious Metals Basket ETF Trust are not investment companies registered under the Investment Company Act of 1940 or a commodity pool for purposes of the Commodity Exchange Act. Shares of the Trusts are not subject to the same regulatory requirements as mutual funds. These investments are not suitable for all investors. Trusts focusing on a single commodity generally experience greater volatility.
Commodities generally are volatile and are not suitable for all investors. Please refer to the prospectus for complete information regarding all risks associated with the Trusts.
The value of the Shares relates directly to the value of the precious metal held by the Trust and fluctuations in the price could materially adversely affect investment in the Shares. Several factors may affect the price of precious metals, including: A change in economic conditions, such as a recession, can adversely affect the price of the precious metal held by the Trust. Some metals are used in a wide range of industrial applications, and an economic downturn could have a negative impact on its demand and, consequently, its price and the price of the Shares; Investors’ expectations with respect to the rate of inflation; currency exchange rates; interest rates; Investment and trading activities of hedge funds and commodity funds; and global or regional political, economic or financial events and situations. Should there be an increase in the level of hedge activity of the precious metal held by the Trust or producing companies, it could cause a decline in world precious metal prices, adversely affecting the price of the shares. Should there be an increase in the level of hedge activity of the precious metal held by the Trust or producing companies, it could cause a decline in world precious metal prices, adversely affecting the price of the shares.
Also, should the speculative community take a negative view towards the precious metal held by the Trusts, it could cause a decline in prices, negatively impacting the price of the shares. There is a risk that part or all of the Trusts’ physical precious metal could be lost, damaged or stolen. Failure by the custodian or sub-Custodian to exercise due care in the safekeeping of the precious metal held by the Trusts could result in a loss to the Trusts.
The Trusts will not insure its precious metals and shareholders cannot be assured that the custodian will maintain adequate insurance or any insurance with respect to the precious metals held by the custodian on behalf of the Trust. Consequently, a loss may be suffered with respect to the precious metal that is not covered by insurance. Commodities generally are volatile and are not suitable for all investors.
Diversification does not eliminate the risk of experiencing investment losses.
This material must be accompanied or preceded by the prospectus. Carefully consider each Trust’s investment objectives, risk factors, and fees and expenses before investing. To view the prospectus, please click here – abrdn Silver ETF Trust, abrdn Gold ETF Trust, abrdn Platinum ETF Trust, abrdn Palladium ETF Trust and abrdn Precious Metals Basket ETF Trust.
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