PLTM: Take Advantage of the Rally in Platinum with These 3 ETFs

After gold and silver, platinum is considered by investors to be the next most important precious metal. Like gold and silver, platinum is treasured by many investors as a safe-haven asset to store value in times of economic uncertainty.

While platinum has been the weakest performing metal among the precious metals over the past year, it has begun to rally lately. The metal is in increasing demand for use in cleaning toxins from the environment amid a growing global interest in reducing greenhouse emissions. This, along with its other industrial uses, could drive its rally in coming quarters. One of the most popular ways to gain exposure in platinum these days is by investing in platinum ETFs. The key advantages of investing in an ETF are better liquidity compared to holding the physical metal and less risk compared to investing in platinum mining stocks.

Vehicles such as GraniteShares Platinum Shares ETF (PLTM - Get Rating), iPathA Series B Bloomberg Platinum Subindex Total Return ETN (PGM - Get Rating), and Aberdeen Standard Physical Platinum Shares ETF (PPLT - Get Rating) are solid options we believe for investors seeking exposure to platinum to benefit from the metal’s potential upside.

GraniteShares Platinum Shares ETF (PLTM - Get Rating)

PLTM’s investment objective is to deliver returns based on the performance of the ISE Global Platinum Index. The ISE Global Platinum Index is designed to track public companies that are involved in the platinum mining industry. PLTM invests in physical platinum that is held in a vault located in London.

PLTM’s price is up 4.3% so far this year. The ETF closed yesterday’s trading session at $9.96, gaining 5.6% over the past month.

PLTM has assets under management (AUM) worth $20.1 million. The ETF’s expense ratio is 0.5% versus the category average of 0.45%. The ETF’s holdings are 100% physical platinum.

PLTM’s prospects are also apparent in its POWR Ratings, which accord it a “Strong Buy” rating. It also has an “A” for Trade Grade, Buy & Hold Grade, and Peer Grade. It is ranked #5 of 36 ETFs in the Precious Metals ETFs group.

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iPathA Series B Bloomberg Platinum Subindex Total Return ETN (PGM - Get Rating)

PGM’s investment objective is to provide exposure to the Bloomberg Platinum Subindex Total Return. This fund is structured as an ETN. Rather than investing in physical platinum, the fund invests in futures contracts on the metal.

PGM’s has gained 2.7% year-to-date to close yesterday’s trading session at $48.56. The fund has gained 5.6% over the past month.

PGM currently has assets under management of $5.3 million. It has an expense ratio of 0.45%. PGM’s holdings consist solely of platinum.

PGM’s POWR Ratings reflect a promising outlook. The ETF is rated a “Strong Buy” with an “A” for Trade Grade and Peer Grade, and a “B” for Buy & Hold Grade.

Aberdeen Standard Physical Platinum Shares ETF (PPLT - Get Rating)

PPLT’s investment objective is to reflect the value of platinum. PPLT uses the PM London Spot Fix as a benchmark. The fund’s physical platinum is stored in a secure vault in London.

PPLT has gained 3.7% so far this year to close yesterday’s trading session at $94.32. PPLT gained 5.9% last month.

Currently, PPLT has assets under management worth $1.27 billion. The fund’s expense ratio is 0.6%. PPLT’s entire holdings are physical platinum.

PPLT’s prospects are also apparent in its POWR Ratings, which accord it a “Strong Buy” rating. It also has an “A” for Trade Grade, Buy & Hold Grade, and Peer Grade. It is ranked #1 out of 36 ETFs in the Precious Metals ETFs group.

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PLTM shares were trading at $10.05 per share on Wednesday afternoon, up $0.09 (+0.90%). Year-to-date, PLTM has gained 5.24%, versus a 16.33% rise in the benchmark S&P 500 index during the same period.

About the Author: Aaryaman Aashind

Aaryaman is an accomplished journalist that’s passionate about providing in-depth insights about investing and personal finance. Recently he has been focused on the stock market and he specializes in evaluating high-growth stocks. More...