Given growing demand and dwindling supply, platinum and palladium prices are poised to go up further, especially if the current trends persist. As such, investors should definitely tap the bullish fundamentals with the following two ETFs (see: all the Precious Metals here):
ETF Securities Physical Palladium Shares (NYSEARCA:PALL)
The fund seeks to match the spot price of palladium, net of fees and expenses. With AUM of $507.5 million, the ETF owns palladium bullion in plate or ingots kept in Zurich or London under the custody of JPMorgan Chase Bank.
The product has expense ratio of 0.60% and sees moderate volume of more than 75,000 shares a day. PALL is leading the precious metal space, gaining nearly 16% in the year-to-date time frame.
ETFS Physical Platinum Shares (NYSEARCA:PPLT)
This fund tracks the performance of the price of bullion platinum, before Trust expenses. With about $764 million in AUM, this is the largest and the only physically backed platinum product and kept in Zurich or London in plate and ingot form under the custody of JP Morgan Chase Bank.
The product sees light volume of around 40,000 shares a day and charges 60 bps in fees per year from investors. The ETF has added about 8% in the year-to-date period.
Investors should note that these two products would continue their outperformance given that the prolonged strikes in South Africa and ongoing tensions in Russia are unlikely to be resolved any time soon. These products have a Zacks ETF Rank of 2 or ‘Buy’ rating.
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