For investors looking to gain exposure to precious metals, physically purchasing and storing them can be challenging and expensive. An efficient alternative is to invest in precious metals exchange-traded funds.
Technically, most of these are grantor trusts, but they function similarly to ETFs, bought and sold like stocks.
To identify the best precious metals ETFs for 2024, we evaluated the options based on assets under management, expense ratios, track records and liquidity. We also adopted a “best in class” approach, targeting one standout ETF for each major category of precious metals and an ETF that offers comprehensive exposure to all four precious metals.
Why trust our investing experts
Experienced fund analysts select our best fund selections based on a screening of several must-have metrics. Some of these metrics include but are not limited to assets under management, expense ratio, strategy, management, minimum investment requirements, turnovers and fees. You can read more about our methodology below.
- 3,000+ ETFs screened.
- 3 levels of fact-checking.
- 3-step editorial review.
- SPDR Gold Shares (GLD).
- iShares Silver Trust (SLV).
- abrdn Physical Platinum Shares ETF (PPLT).
- abrdn Physical Palladium Shares ETF (PALL).
- abrdn Physical Precious Metals Basket Shares ETF (GLTR).
Compare the best precious metals ETFs
| FUND | TICKER | NET EXPENSE RATIO | AUM | 5-YEAR RETURN AS OF DEC. 31 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| GLD | 0.40% | $56 billion | 9.30% | ||||||
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| SLV | 0.50% | $10 billion | 8.50% | ||||||
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| PPLT | 0.60% | $997 million | 3.90% | ||||||
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| PALL | 0.60% | $219 million | -3.20% | ||||||
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| GLTR | 0.60% | $959 million | 7.60% | ||||||
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Methodology
Our curated rankings of the precious metal ETFs were created by screening funds for several must-have metrics:
AUM: All precious metal ETFs on this list have accrued at least $100 million in AUM.
Expense ratio: No precious metal ETF on this list has an expense ratio exceeding 0.6%.
Liquidity: All precious metal ETFs on this list have a low bid-ask spread and sufficient daily traded volume.
Breadth: We picked the “best in class” ETF for gold, silver, platinum and palladium, along with an ETF that encompassed all four.
Track record: All ETFs selected for this ranking have a track record of at least 10 years.
An experienced fund analyst selected the funds above, but they may not be right for your portfolio. Before purchasing any of these funds, do plenty of research to ensure they align with your financial goals and risk tolerance.
Why other funds didn’t make the cut
We implemented a rigorous selection process to determine the best precious metal ETFs. This involved excluding certain types of funds that didn’t align with our criteria for what constitutes the most advantageous ETF offerings.
We excluded precious metal closed-end funds, or CEFs. While these funds are popular, they aren’t technically ETFs and have a key difference in how they are traded. CEFs can trade at significant discounts or premiums to their net asset value, or NAV.
This price discrepancy occurs because the trading price of CEFs is driven by market demand and supply, meaning the price of the fund can stay within the actual value of its underlying assets.
In contrast, ETFs typically have mechanisms to align their trading prices more closely with their NAV, making them less susceptible to these kinds of pricing discrepancies.
Next, we excluded precious metal exchange-traded notes, known as ETNs. ETNs are different from traditional ETFs because they are unsecured debt instruments issued by a financial institution. Rather than holding physical metals, ETNs provide exposure to metal prices through IOUs or debt instruments.
The exclusion of ETNs was primarily due to the counterparty risk involved — since ETNs are backed by the credit of the issuing institution, their safety depends on the issuer’s creditworthiness.
Finally, we did not consider ETFs that provide synthetic exposure to precious metals through futures contracts. While these ETFs aim to track the prices of precious metals, they do so by investing in futures contracts, which can introduce tracking errors relative to the spot prices of the metals.
Our goal was to minimize such errors and ensure our recommended ETFs provide a more accurate reflection of the current market prices of the precious metals. This stringent selection process was designed to identify ETFs that offer the most direct and reliable exposure to precious metals, thereby serving the best interests of investors seeking to add these assets to their portfolios.
Related: Best gold IRAs
Final verdict
Our selection for the overall best precious metals ETF is the abrdn Physical Precious Metals Basket Shares ETF (GLTR).
While it may not boast the highest AUM or the lowest expense ratio in its class, GLTR stands out for its comprehensive coverage, holding gold, silver, platinum and palladium. This broad spectrum of precious metals makes it a unique and appealing choice for investors seeking diversified exposure in this asset class.
The ETF’s provider, abrdn, also brings significant expertise in the industry. The firm commits to transparency, a crucial aspect for investors in precious metals.
Abrdn demonstrates this by regularly posting inspection letters and a detailed list of the bars held in ETFs on their website. This level of openness provides investors with the assurance and information necessary to make informed investment decisions.
A precious metals ETF is an investment vehicle that holds a basket of bullion and physical deposits, which can include gold, silver, platinum, palladium or a combination of these.
The primary objective of these ETFs is to track the spot prices of the underlying precious metals, minus any liabilities like management fees. This tracking allows investors to gain exposure to the metals market without physically owning the metal.
ETFs store the physical bullion in audited and secure vaults. The stored bullion serves as the backing for the ETF’s value. When investors buy shares in a precious metals ETF, they gain fractional exposure to the physical metals held in these vaults.
This method of investing in precious metals offers the benefits of direct metal ownership, such as a potential hedge against inflation and currency devaluation, without the complexities of physical storage and security.
Are precious metals a good investment?
Whether precious metals are a good investment largely hinges on your investment objectives. These metals, encompassing gold, silver, platinum and others, offer unique characteristics that align well with certain investment strategies.
For investors seeking to diversify their portfolio, which might predominantly consist of stocks and bonds, precious metals can be an appealing option. These metals often have a low correlation with traditional financial assets, meaning their prices don’t always move in tandem with stock or bond markets. This characteristic can be beneficial in spreading risk and reducing the volatility of an overall investment portfolio.
Another common reason for investing in precious metals is as a hedge against inflation or economic downturns, such as a recession. Precious metals, especially gold, have historically been considered a store of value. During times of economic uncertainty or high inflation, investors often turn to these assets as they tend to hold their value better than paper currencies or other asset classes.
Additionally, some investors are attracted to precious metals as a way to speculate directly on the demand within the precious metals market. For instance, rising demand for industrial uses of these metals, or increased investment demand during uncertain economic times, can drive their prices up, potentially offering profitable opportunities for investors who have speculated correctly.
Frequently asked questions (FAQs)
The best ETF for platinum according to our ranking is the abrdn Physical Platinum Shares ETF (PPLT), which charges a 0.6% expense ratio.
According to ETF data provider VettaFi, the best-performing gold ETF over the trailing five-year period is SPDR Gold MiniShares Trust (GLDM), with an annualized return of more than 9% as of Dec. 31. GLDM has a low expense ratio of 0.1%, which minimizes drags for investors with a long-term buy-and-hold strategy.
