The S&P 500 has decreased approximately 6% year-to-date, but select ETFs focusing on tangible assets are thriving. Notably, the Global X Lithium & Battery Tech ETF (LIT), Schwab US Dividend Equity ETF (SCHD), and Invesco Optimum Yield Diversified Commodity Strategy ETF (PDBC) have significantly outperformed market trends due to the ongoing global energy crisis exacerbated by the conflict in Iran.
The LIT ETF, which tracks the Solactive Global Lithium Index, has seen increased interest as lithium demand is projected to reach 3.6 million metric tonnes by 2030, more than double 2025 levels. It currently has a 0.75% expense ratio and a beta of 1.59. On the other hand, SCHD focuses on 100 dividend-paying companies, achieving a 3.47% yield and a 0.06% expense ratio, while PDBC has gained over 30% year-to-date, benefiting from rising commodity prices across energy, precious metals, and agriculture as Brent and WTI crude prices surged past $100 per barrel.
As of this week, PDBC has pushed to record highs, bolstered by $400 million in net inflows over the past three months. The current investment environment indicates a pivot towards assets that can withstand geopolitical uncertainties, highlighting a renewed focus on real assets amidst rising energy costs.
