The Best Palladium ETFs to Invest in: Benefits and Risks


Palladium ETFs are a viable way to trade commodities, with several advantages in terms of both the economic aspect and the risk rating. What are they exactly? Which ones can be considered the best? And why operate on these financial instruments? Below we are going to analyze the best ETFs on Palladium.

ETFs on Palladium: What are they

The acronym ETF (Exchange Traded Fund) identifies an indexed passive management investment fund. This means that its performance replicates that of a specific asset. In this way, the quotation of the fund will refer to the average of the trends of all securities that are present within it. The replication can be physical or synthetic. In the first case the value of the fund will be similar to that of the index which is reproduced. On the other hand, in the synthetic replication, only a specific group of securities will be considered, whose average will determine the fund’s yield.

Therefore, an ETF on palladium identifies a fund which includes companies that are directly linked to the extraction and processing of this mineral. A precious metal that today has acquired an enormous value, thanks to its particular characteristics.

Using an ETF, it will be possible to invest on a basket of securities that determine the performance of the asset, but also on palladium itself, using an ETC. The acronym refers to the Exchange Traded Commodities, funds issued by a specific company, which offers the user the opportunity to purchase a specific position only on palladium.

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How to Invest in ETFs

To invest in palladium today there are several opportunities. In fact, you can turn to a financial advisor to be guided in the choice of commodities and quantities to buy. In addition, another opportunity is to go to the bank and agree with the investment manager the different strategies of operation on palladium. Two very practical solutions, but which limit your own operativity and direct control over your investments. In addition, you must take into account the costs, often significant, both for the management of operations, both for banking operations.

What can be the most cost-effective and professional solution? A valid opportunity is to take advantage of an online broker, such as the eToro platform. Signing up takes just a few minutes, and gives you access to one of the most widely used platforms in Europe and the world.

The Best ETFs on Palladium: Quotation and Technical Analysis

Thanks to the various advantages of ETFs, today there are several solutions available on which to invest. How to evaluate the best ETF? It may be useful to evaluate the size of the fund, the percentage of return attached and the history of the fund itself. Below we point out some of the most widely used Exchange Traded Funds.

WisdomTree Physical Platinum

It can be identified by its ISIN code JE00B1VS3002, with the ticker PHPD. Its size reaches $217 million. It is a physically replicating ETF, so it will directly reference the underlying index. It can also be considered very useful for investing your money because of its limited cost of around 0.49% per year.

Its performance is quite volatile as it has a risk index of 39%. While in the years preceding the pandemic its trend has marked a constant growth, in 2021 there has been a contraction of the price. In any case, it can be considered a valid long-term investment.

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iShares Physical Palladium

The fund can be identified by the code IE00B4556L06 and the ticker SPDM. It was placed on the market by a company like iShare, which specializes in creating and managing high-yield investment funds.

What are its features? First, you’ll need to consider the size of the ETF, which is very useful in giving you some sort of guarantee, amounting to $26 million. Also, you’ll have to consider which broker issued it, and the type of replication. In the particular case this is physical. The fund has high volatility, no currency hedging and low management costs of 0.20%.

Xtrackers Physical Palladium ETC

A fund created in 2010, identifiable by the ticker XPAL with the ISIN code GB00B5VYVZ75. Its main characteristic is that of being an ETF with a high volatility of 29%. The replication is physical and the size is around $7 billion, with an annual cost of 0.45%.

It can be a viable investment solution due to its low expenses. Moreover, it is considered among the best ETFs on palladium. In fact, it can be worth investing in the medium term.

Invesco Physical Palladium

The code that identifies it is IE00B4LJS984, listed in April 2011, with a physical replication. The volatility rating is high reaching 39.54%. The size is around 53 billion, with one of the lowest management costs at 0.19%.

Benefits and Risks of Investment: Is it worthwhile?

Investing in ETFs on palladium can be advantageous, thanks to the combination of the characteristics of this raw material and investment funds. In fact, this precious metal is now an integral part of the technology industry, present in our daily tools, from computers to phones, from appliances to household items. The rising price is due to the scarce availability of this raw material, today present mostly in Russia and South Africa.

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In addition, palladium seems to maintain a constant yield over time, and this offers ample investment opportunities, with limited risk. Another aspect to be considered are the characteristics of ETFs which contribute to making trading in this raw material safe and with the opportunity to obtain a certain return. This is possible thanks to the passive management of the funds. Finally, ETFs on palladium are advantageous from the economic point of view, with reduced management costs.


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