Survey Reveals Commodities' Untapped Potential Among Financial Advisors in 2025

Survey Reveals Commodities' Untapped Potential Among Financial Advisors

A recent survey conducted by Aberdeen Investments in collaboration with CoreData Research sheds light on the disconnect between the impressive performance of commodities in 2025 and the limited adoption of these assets among financial advisors and their clients. With 300 U.S. financial advisors participating in the research, representing an impressive $116 billion in client assets, the findings provide a nuanced view of the current state of commodity investments and the barriers to wider acceptance.

Key Findings from the Survey

The survey reveals that, despite a strong performance in 2025, commodities continue to be significantly under-owned in investor portfolios. On average, advisors allocate only 4.6% of their clients' portfolios to commodities. A stark contrast emerges when considering the advisors' beliefs about the crucial role that these assets can play in portfolio diversification and resilience, especially in an era of increased macroeconomic uncertainty and volatility.

Interestingly, while half of the advisors believe that traditional 60/40 portfolios are no longer sufficient to offer the necessary resilience, a substantial 70% emphasize downside protection as a primary concern for client portfolios over the next year. This dichotomy points to a remarkable opportunity for the incorporation of commodities into investment strategies.

Opening Up to Commodities

Almost half (49%) of the advisors indicated that their clients are now more open to the idea of commodity allocations compared to five to ten years ago, with 54% reporting an increase in their usage of alternative assets aimed at diversification. However, there still remains a notable shortfall; while advisors suggest that an optimal allocation of at least 6% to commodities would be appropriate, many have yet to achieve this in practice. This gap between advisor conviction and client implementation signals a need for deeper educational efforts.

Education: The Missing Piece

The most significant barrier to wider adoption of commodities appears to be a lack of understanding among clients. The survey found that 66% of advisors feel that their clients are not aware of how commodities could support their financial aims. In addition, 41% of advisors claim that they find it more challenging to explain the nuances of commodity investments compared to traditional assets.

Conversations tend to be narrowly focused on the benefits of diversification, rather than capitalizing on the other advantages commodities could offer, including liquidity, inflation sensitivity, and exposure to long-term structural trends. It's noteworthy that clients exhibited the most interest in precious metals (89%) and energy (50%), areas where advisors feel more comfortable discussing.

The Role of ETFs in Education and Execution

Exchange-traded funds (ETFs) have emerged as a convenient solution for advisors seeking to bridge the knowledge gap while facilitating practical investment strategies. Among those surveyed, 60% claim to utilize sector-specific commodity ETFs, while 56% prefer broad-based products, primarily due to their transparency, liquidity, and usability. Other avenues considered include commodity-linked equities, commodity-focused mutual funds, and actively managed SMAs or hedge funds.

Robert Minter, Director of ETF Investment Strategy at Aberdeen Investments, emphasizes the potential of commodities for enhancing portfolio resilience amid market volatility. He notes, “Transparent ETFs create the foundation for both education and execution. They simplify access while helping advisors and clients better understand how commodities work. We've invested heavily in educating clients throughout their commodity investing journey.”

Conclusion

The findings from the Aberdeen Investments survey reveal a significant opportunity for both financial advisors and their clients to rethink their approach toward commodities. With the dual challenges of limited client understanding and under-allocation, it becomes imperative for advisors to embark on a journey of education and engagement around commodities. Successfully addressing these gaps could lead to not only a more balanced investment strategy but also more robust financial portfolios that can withstand the uncertainties of the market. As such, commodities represent both a challenge and an opportunity within the asset allocation landscape for 2026 and beyond.