2 Best Commodity ETFs in Canada (June 2026)

Commodity ETFs are designed for Canadian investors looking to gain exposure to physical assets like gold, energy, and raw materials. These ETFs can act as an inflation hedge and provide diversification beyond traditional stocks and bonds.

ETFs like NREA.TO and CGL.TO offer access to commodities either through physical holdings (like gold) or through commodity-related companies. While they can perform well during inflationary periods or supply shocks, they are often volatile and driven by global economic conditions.

In this guide, we break down the best commodity ETFs in Canada, comparing exposure, strategy, and risk so you can decide how they fit into your TFSA, RRSP, or diversified portfolio.

A commodity ETF in Canada is an exchange-traded fund that provides exposure to physical commodities such as gold, energy, or raw materials, either directly through physical holdings or indirectly through commodity-producing companies.

For example, CGL.TO (~0.55% MER) holds physical gold bullion, offering direct exposure to gold prices. NREA.TO (~0.61% MER) provides exposure to global natural resource companies involved in energy, mining, and materials.

Commodity ETFs are commonly used in TFSAs and RRSPs as a hedge against inflation or economic uncertainty. Investors should consider whether the ETF holds physical assets, futures contracts, or equities, as this affects performance and risk.

Pros

• Can act as a hedge against inflation and currency devaluation
• Diversifies a portfolio beyond traditional stocks and bonds
• Exposure to real assets like gold, energy, and raw materials
• Can perform well during commodity bull markets

Cons

• Highly cyclical and dependent on global supply and demand
• Can be volatile with periods of underperformance
• Some ETFs rely on futures, leading to tracking issues
• Limited income generation compared to dividend ETFs