Commodities rallied in the third quarter as geopolitical escalations in both the Middle East and Black Sea pushed energy and agriculture prices higher, with metals ultimately proving resilient despite higher treasury yields and a stronger US dollar1. COMD outperformed its reference index, Bloomberg Commodity Total Return Index (BCOMTR or “the Index”) by 51 basis points2.
Market Review
Commodities rallied strongly during the third quarter, with all but one subsector gaining during the period3. Strait of Hormuz supply disruptions pushed energy sharply higher, with Brent crude oil rising 42%, while downstream products once again outperformed due to constrained global refining capacity, with gasoil and ULS diesel rising 57% and +49% respectively4. Agriculture saw a strong rally, finishing the quarter up 12% as grains caught a bid on the back of escalations in the Black Sea and unfavorable weather conditions5. Metals proved resilient despite rising treasury yields and a stronger US dollar, with gold finishing the quarter up 4% while copper gained 7% on the back of lower-than-expected supply6. Livestock was the only declining subsector, with easing import restrictions pushing protein prices lower despite tight domestic supply7.
Fund Performance & Attribution
COMD outperformed the Bloomberg Commodity Total Return Index for the quarter by 51 basis points, returning 16.70% (NAV return) versus a 16.19% increase in the benchmark8. Since inception on February 10, 2026, the fund has returned 21.05% (NAV return)9.
Contributors: The fund’s overweight positioning in ULS diesel, RBOB gasoline, sugar, bitcoin, and gold, as well as the fund’s underweight positioning in Henry Hub natural gas all contributed to relative performance.
Detractors: Underweight positioning in Brent crude, gasoil, coffee, soybeans, and soybean meal detracted from performance.
This quarter the fund added new positions with exposure to Bitcoin10 and Uranium11.
The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when sold or redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted. Performance current to the most recent quarter- and month-end is available at https://www.globalxetfs.com/funds/comd/. Expense Ratio: 0.55%.
Holdings subject to change
Outlook
We remain constructive on commodities heading into the fourth quarter, but continue to monitor four key factors:
Risks include a de-escalation in the Middle East or the Black Sea that reverses recent energy and agriculture gains, further Fed tightening that strengthens the US dollar and pressures precious metals, normal weather that restores crop supply, and slower global growth that weakens industrial demand.
Why This Fund
Commodities once again proved their resilience thus far in 2026, providing protection against accelerating inflation and outperforming both equities and fixed income17. We see inflation and portfolio concentration as structural risks for many portfolios, with growing El Niño concerns and geopolitical energy supply shocks adding to macroeconomic uncertainty and supporting the case for diversification. COMD provides broad exposure to commodities markets, including agriculture and energy, while the fund's active approach to futures contract selection aims to reduce the costs associated with rolling futures contracts on performance.
Related ETF
COMD – Global X Commodity Strategy
Click the fund name above to view current performance and holdings. Holdings are subject to change. Current and future holdings are subject to risk.
