A market analyst suggests that commodity ETFs can be used to mitigate the effects of geopolitical tensions on investments.

One money manager suggests that it may be time to invest in commodity-based exchange-traded funds.

John Davi, CEO of Astoria Portfolio Advisors, advised investors to shift their focus from stock-based strategies to those centered on oil and gold as tensions between Russia and Ukraine intensify, according to a report on CNBC's "ETF Edge" last week.

Davi, the founder and chief investment officer of his firm, stated that the term is skewed positively.

"Unlike stocks, they can increase in value even during geopolitical uncertainty," he stated.

Davi suggested three commodity baskets to hedge against global risks and inflation.

• (PDBC)
• The (BCI)
• The (COMB)

Commodity ETFs are worth having in the portfolio to diversify risk attributes, he said broadly.

Investors can currently hold some commodities at no cost due to backwardation, which occurs when front-month futures prices are higher than those further on the curve, making it profitable to roll futures contracts over, according to Davi.

In the interview, ETF Trends CEO Tom Lydon stated that they're not hesitating.

"Commodities are experiencing a surge, according to Lydon. Rising rates can harm client portfolios, which advisors are aware of. Although investors have not witnessed this in a while, they are expressing their concerns through their actions."

On Tuesday, oil prices increased due to heightened geopolitical risk concerns, while gold prices remained close to their nine-month high.