What Are Platinum ETFs?
Exchange-traded funds have become a popular option for investors seeking exposure to platinum, as this structure minimizes expenses while eliminating challenges associated with physical storage. While there aren\'t nearly as many ETFs that focus on platinum as the metal\'s more famous cousins of gold and silver, there are still a number of choices nonetheless.
In terms of physical exposure, the most popular choice is the ETF Securities Physical Platinum Shares (PPLT) which holds physical bars of the metal in secure vaults in Europe. For those looking to invest in platinum futures via the ETP structure, two options are available; the iPath DJ-UBS Platinum TR Sub-Index ETN (PGM) and the UBS E-TRACS Long Platinum TR ETN (PTM). It should be noted that both of these funds are structured as ETNs so they do carry some level of credit risk. For those looking to go short platinum, an option exists for that as well, the E-TRACS UBS Short Platinum ETN (PTD).
Exposure to platinum focused equities is also possible as First Trust has an ISE Global Platinum Index Fund (PLTM) which tracks companies that are active in platinum group metal mining.