GLD vs DBC
SPDR Gold Shares vs Invesco DB Commodity Index Tracking Fund
Bottom line: GLD holds only gold; DBC holds a diversified basket of energy, metals, and agriculture. They hedge different risks and are not interchangeable.
At a Glance
| GLD | DBC | |
|---|---|---|
| Issuer | State Street / World Gold Council | Invesco |
| Index Tracked | LBMA Gold Price (spot gold) | DBIQ Optimum Yield Diversified Commodity Index |
| Expense Ratio | 0.4% | 0.87% |
| Data Start Date | 2000-09-01 | 2006-03-01 |
Price History
One metal versus a basket
GLD tracks the price of physical gold bullion — a single asset. DBC tracks a broad commodity index spanning crude oil, gasoline, metals, and agricultural goods via futures contracts. They are fundamentally different exposures.
Gold behaves as a monetary hedge and safe-haven store of value. Broad commodities behave more like an inflation and growth hedge tied to the real economy.
How they respond to inflation
During the 2022 inflation spike, DBC surged because energy prices — its largest weight — rose sharply, while gold was roughly flat. In deflationary or crisis periods, gold often shines while cyclical commodities fall. The two hedge different scenarios.
DBC also carries the complexities of futures-based investing, including roll yield and a K-1 tax form, whereas GLD's physically backed structure is simpler to hold and tax.
Role in a diversified portfolio
The Permanent Portfolio uses gold specifically for its monetary-hedge properties, favoring an exposure like GLD. Ray Dalio's All Weather uses both gold and broad commodities, recognizing they protect against different kinds of inflation.
If you want a clean crisis and currency hedge, GLD is the tool. If you want exposure to real-economy inflation driven by energy and materials, DBC fits better.
Frequently Asked Questions
Is GLD or DBC a better inflation hedge?
It depends on the type of inflation. DBC, dominated by energy, tends to rise with commodity-driven inflation like 2022. GLD hedges monetary debasement and crises. Many diversified strategies hold both because they protect against different scenarios.
Does DBC issue a K-1 tax form?
Yes. DBC uses commodity futures and is structured as a partnership, so it issues a Schedule K-1 rather than a standard 1099. GLD, which holds physical gold, does not issue a K-1.
Hypothetical historical performance based on backtested data. Past performance does not guarantee future results. This site is for educational purposes only and does not constitute investment advice. Full disclaimer