Insights
CommoditiesEmbracing commodities to support diversification goals
Part Two of the Aberdeen Investments Commodities Research Series, this second installment examines how financial advisors are rethinking portfolio construction by moving beyond the traditional 60/40 mix and adding alternative assets like commodities.
Author
Aberdeen Investments
Part 2 of
Commodities research series
Duration: 7 Mins
Date: Mar 13, 2026
Key findings
- Nearly 70% of surveyed financial advisors believe the traditional 60/40 portfolio is no longer sufficient to meet today’s portfolio objectives, prompting a shift toward alternative assets like commodities to support downside-risk considerations (70%) and diversification goals (46%).
- 54% of advisors say they are increasing their focus on alternatives in the next 12 months, with 41% planning to boost client exposure specifically to commodities or precious metals.
- Liquidity is a key driver of adoption: 61% of advisors prefer liquid alternatives, and commodities – especially via ETFs – as seen as accessible, flexible tools that align with this preference.
- ETFs are the dominant vehicle for commodity exposure, with 60% of advisors using sector-specific ETFs and 56% using broad commodity index ETFs, citing simplicity, daily liquidity, and low cost as primary advantages.
What if building more diversified portfolios requires looking beyond the traditional 60/40?
In today’s unpredictable markets, a growing number of financial advisors are rethinking the traditional 60/40 portfolio model. Persistent inflation, rising interest rates, and simultaneous stock-and-bond downturns have exposed the limits of relying solely on stocks and bonds for diversification.
In a recent survey conducted by Aberdeen Investments 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 half of the advisors polled said the traditional 60/40 portfolio is no longer adequately resilient in the current environment. Instead, advisors are prioritizing risk management and true diversification:
- 70% cite improving downside protection as the top priority for client portfolios
- 46% list increased diversification as a key near-term objective
To achieve these goals, advisors are turning to alternative investments like commodities and precious metals. 37% of advisors are planning to increase allocations to precious metals, and 29% to broad commodities in 2026 (Chart 1).
Chart 1. Surveyed advisors who plan to make alternative changes in 2026
Among advisors who do not currently use alternatives, half plan to make new allocations to precious metals over the next 12 months, while interest in broad commodities is more limited, with roughly 13% planning to allocate in 2026 (Chart 2).
Chart 2. Surveyed advisors identified non-users who plan to allocate to alternatives in 2026
In fact, surveyed advisors expect to increase alternatives allocations by roughly three percentage points (on average) over the next two years. With alternatives currently representing only about 7–8% of client portfolios, that shift would push allocations closer to 10–11% – amounting to a roughly 40% increase relative to today’s levels across many advisory practices.
Our research
Read Part One of Aberdeen Investments Commodities Research Series to learn about commodities under allocation, advisor-client communication gaps, and benefits beyond diversification.
Our perspective
For deeper, timelier insights into commodities and precious metals market, explore our monthly commentary from Robert Minter, Director of ETF Investment Strategy.
A pivot to alternatives
Per our survey, advisors recognize that adding new ingredients to portfolios is essential for addressing portfolio construction challenges (Chart 3). Advisors view alternative investments as a key component of more diversified risk-aware portfolio construction.
Chart 3. Surveyed advisors increasingly focused on alternatives for portfolio diversification
Alternatives is a broad category, encompassing everything from real estate and private credit to commodities and hedge fund strategies. What they share is a different performance pattern than traditional stock and bond holdings. By mixing in these assets, advisors aim to smooth out portfolio ups and downs.
Survey data highlights this pivot
54% of advisors are placing greater emphasis on alternatives as a diversification source in the coming year (Chart 4).
Chart 4. Surveyed advisors broadly focused on alternatives as a diversification tool
In practice, this means advisors plan to modestly trim some stock or bond exposure in favor of assets like commodities, real estate investment trusts, private equity, or infrastructure.
Small shifts, meaningful impact
On average, advisors expect to boost overall alternatives allocations by about three percentage points over the next two years. Why now? Recent market events have reinforced the value of alternatives:
- When inflation spiked, commodities – such as energy and metals – generally rose, providing an inflation hedge that traditional assets lacked.
- During equity bear markets, certain alternatives – for instance, gold and other precious metals – often held their value or appreciated, softening the blow to portfolios.
- Diversified hedge strategies – aiming for absolute returns – at times delivered gains even when both stocks and bonds declined.
Advisors are keenly aware of these dynamics. In our survey, a strong majority expect alternatives to improve risk-adjusted returns and provide new sources of return not tied to stock market performance. Many also emphasize the importance of staying liquid and flexible.
Keep in mind, not all alternatives are alike: some, like private equity or real estate, can lock up capital for years. But advisors show a clear preference for liquid alternatives. 61% of advisors say they prefer any new alternative investments to be on the more liquid end of the spectrum.
Commodities on advisors’ radars
Commodities stand out as a prime opportunity within the alternatives surge. They are immediately liquid and widely accessible via funds. And advisors have taken note: according to our research, over 41% plan to increase client exposure to commodities or precious metals in the next year. Commodities also directly address advisors’ top concerns: they historically provide diversification and can act as a buffer during downturns or inflationary spikes. Advisors view alternative assets not as exotic extras, but as essential additions to modern portfolios. The opportunity is to achieve broader diversification and more balanced portfolio construction by thoughtfully incorporating alternatives. With many advisors already moving in this direction, those who embrace this shift can potentially set themselves apart by delivering smoother portfolio experiences for their clients.
Commodities via ETFs
Among the various alternative assets available, commodities have emerged as a practical option for supporting diversification objectives within portfolio construction. Furthermore, advisors are finding it easy to incorporate commodities thanks to user-friendly investment vehicles, especially exchange-traded funds (ETFs).
Commodities as a strategic allocation
We believe commodities bring unique benefits to a portfolio, such as:
- Low correlation with traditional assets. For example, the factors that drive oil, gold, or corn prices are very different from those driving stock prices. This means a small allocation to commodities may noticeably reduce overall portfolio volatility.
- Downside protection and inflation hedging. Historically, when inflation rises or when equities suffer large losses, commodities – particularly gold and broad commodity baskets – tend to hold their value or increase. This provides a cushion during market stress.
- Capitalize on global trends. Real assets like industrial metals or energy may benefit from economic shifts, such as infrastructure spending, supply disruptions, or rising demand from emerging markets. These growth drivers are often uncorrelated to financial markets, adding another layer of diversification.
ETFs as the preferred tool
Our survey confirms that advisors overwhelmingly favor commodity ETFs over more complex investment structures. 60% of advisors implementing commodities use sector-specific commodity ETFs, and 56% use broad commodities index ETFs (Chart 5).
Chart 5. Paths to commodities exposure for clients
Far fewer pursue illiquid or complicated routes such as hedge funds, private placements, or direct commodity futures accounts. Therefore, the popularity of ETFs may just come down to practicality:
- Simplicity and ease of implementation. ETFs can be bought and sold in a regular brokerage account, just like a stock. Advisors don’t need special agreements or operational overhead to add a commodity ETF to a client portfolio.
- Daily liquidity. Commodity ETFs trade on exchanges, so advisors can adjust positions any day the market is open. This liquidity aligns with the need for flexibility – an advisor can trim or add to a commodity position quickly in response to market changes or client needs.
- Lower costs. ETFs generally have low expense ratios, especially compared to traditional alternative vehicles like hedge funds (which charge higher fees and often take a share of profits). Low costs help clients keep more of their returns.
- Transparency. ETFs typically disclose their holdings and track known indexes. Advisors and clients can easily understand what exposure they are getting (e.g., gold bullion, a basket of various commodities, etc.), which tend to build trust and makes conversations easier.
- Strategic and tactical use. Because they are easy to trade, ETFs can be used for long-term strategic allocations or short-term tactical moves. An advisor might decide to maintain a constant 5% commodity allocation via an ETF for diversification (strategic) and tactically overweight a specific commodity if market conditions warrant – all through the ETF market. This versatility means one set of tools can serve multiple purposes.
Commodity ETFs offer a convenient bridge between the need for broader diversification and the practical realities of portfolio management. They allow advisors to diversification-focused portfolio decisions efficiently, without adding unnecessary complexity to their practice or the client experience. In this way, commodities can serve as a strategic portfolio component rather than an operational burden.
A proactive adjustment to a changing world
The evolving approach of financial advisors – moving beyond the 60/40 paradigm and integrating alternatives – represents a proactive adjustment to a changing world. By embracing assets like commodities, advisors are expanding the toolkit available to build durable portfolios. This shift is underpinned by a few key takeaways:
- Portfolio construction priorities are shifting. In an era of higher uncertainty, advisors are prioritizing moves that protect client portfolios from adverse scenarios. Alternatives and commodities may play a crucial role in that defensive game plan.
- Diversification is being redefined. No longer does diversification mean just a mix of stocks and bonds. It now often includes a slice of real assets and other return streams to achieve true balance.
- Accessibility has fueled adoption. The availability of low-cost, liquid vehicles – like ETFs – has made it far easier to implement alternative strategies. Advisors can now pursue sophisticated allocations with the same ease as buying an index fund.
- Education remains important. While this article focuses on the allocation trends, it’s clear that ongoing education – for advisors and clients alike – will ensure these diversified strategies are understood and embraced.
Final thoughts
In conclusion, we believe the increased allocations to alternatives signal a strategic evolution in portfolio management, not a temporary fad. Advisors are effectively saying that to navigate today’s markets, one must cast a wider net. Commodities – once a niche play – are now stepping into the mainstream as a component many advisors are incorporating into modern portfolio construction. This balanced approach, blending traditional and alternative assets, may offer an additional consideration within broader portfolio design decisions.
Endnotes
1 CoreData is a global specialist market research consultancy and unique collaboration of experienced research, marketing, industry, and media professionals.
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.
ALPS Distributors, Inc. is the marketing agent. ALPS is not affiliated with Aberdeen.
ETF002462 8/15/26
AA-100326-205324-1
