ETFs (Exchange-traded funds) for platinum may help you achieve your objectives if you consider increasing your portfolio's exposure to the metal. Although this valuable metal may not be as well-known as gold or silver, it is an essential component of many everyday objects. It plays a role in several chemical reactions. To help you get started with your research, below are some fundamentals about investing in platinum, as well as some instances of platinum ETFs. Remember that, like with any investment, you should consider these ETFs in the broader context of your objectives and risk tolerance. It's crucial to thoroughly investigate a fund's history and holdings before investing in platinum ETFs to ensure it is a good fit for your objectives.
How To Invest?
Although platinum is most frequently associated with jewelry, particularly rings, there are many additional applications for metal. This article concentrates on platinum ETFs, but there are other investment methods. Platinum is a crucial component of manufacturing and medical equipment and is frequently used in the fuel cell batteries of electric vehicles. For example, you can invest in mining firms or trade platinum on the futures market. You can also use precious metals or platinum indices to help you make decisions. Like with gold or silver, you can buy platinum if you have the means to store it.
What is A Platinum ETF?
Platinum ETF, like any other ETF, is a product that offers broad industry exposure with only one investment. When it comes to platinum ETFs, the fund's underlying assets may comprise platinum miners and other businesses involved with the metal. Platinum is physically kept away in additional funds. All the advantages of ETFs apply to platinum ETFs. These have diversified assets and a few tax advantages compared to mutual funds. Platinum ETFs can be leveraged or inverse, just like ETFs covering any other industry. These sophisticated trading tools use futures, options, and other derivatives to accomplish the objective. This objective can be to underperform the market or go short. Additionally, platinum ETNs (exchange-traded notes) resemble ETFs but differ significantly in meaningful ways.
Platinum ETFs list
For your research, here is a list of platinum ETFs and ETNs. Remember that changing the holdings, objectives, tickers, and other aspects of ETFs and ETNs is not uncommon. This list is intended to serve as a starting point for your study. It would help if you did more research to ensure that these items will help you achieve your goals. As of July 1, 2021, below is this list.
PPLT (abrdn Standard Physical Platinum Shares) ETF
PPLT is set up as a grantor trust, and after the fund's costs are taken out, its goal is to follow the spot price of platinum. The ETF is bought and sold on the NYSE Arca electronic exchange. The London Platinum and Palladium Market tell PPLT how much platinum should be priced for good delivery.
PLTM (The GraniteShares Platinum Trust)
PLTM is also a grantor trust backed by platinum held in a vault, just like PPLT. The vault is in London, and it is checked twice a year. The metal can't be loaned out, and the trust can't hold derivatives. The goal of the fund is to provide an affordable way to invest in platinum by following the price of platinum on the spot market minus the fund's costs.
PGM (iPath Series B Bloomberg Platinum Subindex) Overall Return ETN
As was already said, PGM is the only platinum fund that is set up as an ETN. The fund aims to give investors access to the Bloomberg Platinum Subindex Total Return. The fund is not backed by real platinum but by futures contracts. Since there aren't many PGM trades, the overall trading costs are likely higher than those with more liquid investments.
Corresponding Precious Metals ETFs
Although the available alternatives for platinum ETFs (exchange-traded funds) are pretty restricted, you can increase the number of ETFs available by widening your scope. Platinum exposure may be included in precious metals ETFs (exchange-traded funds), as well as exposure to other metals that are mined in different parts of the world.
Conclusion
If you want to invest in platinum, using ETFs is a quick and easy approach to increase your exposure. When markets are open, these products can be traded; if you can buy stocks, you can buy these ETFs. Before purchasing any product, whether it is company stock, a mutual fund, or an ETF, does your research. Keep a close eye on the holdings of the fund. You can use that information to determine if the ETF contains essential goods like equities or complex ones like options and other derivatives. It's also a good idea to review the ETF's performance statistics and then contrast them with the index the fund tracks. When in doubt, seek professional advice.
