CIO Active Commodity Strategy

Latest edition · September 17, 2026

Commodity markets en 1666677

UBS Chief Investment Office maintains a 'high' overall stance on broad commodities and has upgraded industrial metals to overweight following a recent price pullback. The team recommends an actively managed commodity strategy spanning dynamic exposure management, active sector rotation, and an enhanced collateral portfolio.

UBS GWM CIO maintains an attractive, 'high' overall allocation to broad commodities, supported by strengthening trend signals and favorable macro conditions. Within sectors, industrial metals are upgraded to overweight from moderately overweight due to tight supply and structural demand, while energy and precious metals remain moderately overweight. Conversely, agriculture and livestock are kept neutral, and collateral allocation remains underweight TIPS. UBS advocates for an active three-pillar strategy—dynamic overall exposure, bottom-up sector rotation, and collateral yield enhancement—to improve risk-adjusted returns relative to passive commodity indices.

Key takeaways from the latest edition

• 1.Overall commodity stance is set to 'high' as top-down macroeconomic conditions and trend signals indicate an attractive risk-reward profile.
• 2.Industrial metals allocation is raised to overweight from moderately overweight, capitalizing on a recent price pullback supported by constrained supply and structural demand.
• 3.Energy remains moderately overweight, supported by declining oil inventories, strong Chinese import demand, Middle East tensions, and a positive roll yield.

What this series covers

• CIO Active Commodity Strategy
• Current allocation of the CIO Active Commodity Strategy
• Overall commodity stance
• Sector stance
• Collateral stance
• Global asset class preferences definitions

Edition archive

• Commodity markets en 1666677

  September 17, 2026

• Commodity markets en 1661799

  June 17, 2026

• Commodity markets en 1661058

  June 4, 2026