Not All Platinum ETFs Are Created Equal
New York (Feb 5) Summary: •Platinum ETFs all seek to track the exact same metal, yet they are not all the same!
•We do a side by side comparison of the numbers, as well as analyze the data to help determine which platinum ETF is right for you.
•Each platinum ETF has its own pros and cons ranging from expense ratios, to average bid-ask spread.
While there is one significant thing in common with these five funds, the differences are all too often overlooked. Assuming one platinum ETF is the same as another is a foolish mistake that could be costly over time. Two of the funds we have included are not 100% platinum funds, yet have significant exposure to platinum. The five ETFs in order of AUM are as follows:
1.ETFS Physical Platinum Shares ETFs (NYSEARCA:PPLT)
2.Sprott Physical Platinum and Palladium Trust (NYSEARCA:SPPP)
3.UBS ETRACS CMCI Long Platinum Total Return ETN (NYSEARCA:PTM)
4.ETFS Physical White Metals Basket Shares ETFs (NYSEARCA:WITE)
5.iPath Bloomberg Platinum Sub-Index Total Return ETN (NYSEARCA:PGM)
PPLT, PTM, and PGM all seek to give investors exposure to platinum and only platinum yet the devil is in the details. SPPP and WITE are more diversified as SPPP holds palladium in addition to platinum, and WITE holds silver and palladium in addition to platinum. As shown above, all five funds have had fairly similar performance over the last one year period.