Commodities: Precious Metals Platinum

PPLT Top Performer Intra-day
Price $89.83
Today’s Change +0.80%(0.90)
4:00pm 09/25/2017
PGM Bottom Performer Intra-day
Price $19.04
Today’s Change 0.00%(0.00)
4:00pm 09/22/2017
  • Overview
  • Efficiency
  • Tradability
  • Fit

ETF.com Insight

In the platinum segment, assets under management tell the whole story. One fund, PPLT, is the clear leader among its peers—both in terms of assets, and investment suitability. WithPPLT, is the clear leader among its peers nearly $600M in AUM, PPLT holds more than 90% of segment assets and is the cheapest and most liquid fund in its segment. Furthermore, it is the only product that actually holds physical platinum, rather than futures contracts on platinum, so it provides the most direct and best exposure to platinum spot prices.
The other two funds in the segment, PTM and PGM, are futures contract based and thus are at best imperfect proxies for platinum spot prices. Neither has consistently beaten nor underperformed spot platinum, but can provide significantly different performance. In addition, both ETNs are closed to creations, so they can trade at false premiums at times of high demand. Given that they're also more expensive than PPLT, there's really no reason to recommend them. (Insight updated 09/25/17)

All Funds (3)

PPLT $523.28 M 523276000 Clear choice

A 100
E
90
90
T
97
97
F
100
100

PTM $10.4 M 10395630 Closed for creations

D 47
E
79
79
T
38
38
F
47
47

PGM $6.14 M 6139687.7 Closed for creations

F 53
E
64
64
T
38
38
F
53
53

ETF.com Grade as 09/21/17

Commodities: Precious Metals Platinum

1 Year Total Return NAV
Performance  [as of 09/21/17] 1 Month 3 Month YTD 1 Year 3 Years 5 Years 10 Years
Benchmark: Platinum Spot--------------
A 100PPLT523276000PPLTETFS Physical Platinum Shares-4.51%0.90%3.60%-11.79%-11.69%-11.08%--
D 47PTM10395630PTMETRACS UBS Bloomberg CMCI Platinum Total Return ETN-4.39%1.45%3.60%-12.58%-12.87%-12.44%--
F 53PGM6139687.7PGMiPath Bloomberg Platinum Subindex Total Return ETN-5.88%1.73%2.83%-13.02%-12.85%-12.57%--
All returns over 1 year are annualized. All returns are total returns unless otherwise stated.

ETF.com Efficiency Insight

PPLT is the most Efficient fund in the segment, with the lowest expense ratio and best tracking record. It is the only fund that holds the physical commodity (the other two trackPPLT has the lowest expense ratio and best tracking record futures-based indexes) and is the most stable of the bunch with about $600M in AUM.
The other two funds—PTM and PGM—charge higher fees and have more volatile tracking error. PTM charges 65 bps. PGM is even more expensive, with a fee of 75 bps. Additionally, PGM has a performance based expense structure such that its fees rise when the note is doing well and fall when it is not. PTM and PGM both typically lag their indexes by over 100 bps.
PTM and PGM also have much lower asset counts than PPLT: each note's AUM is a tiny fraction of PPLT's. We see high closure risk for both.
The one advantage the two futures-based funds have over their larger competitor is taxes—due to their ETN structures, PTM and PGM see gains taxed at the regular capital gains rates, while investors in PPLT must pay the higher collectibles rate. Still, the two fund's steep holding and trading costs, as well as higher risks, are unlikely to be offset by lower taxes. (Insight updated 09/25/17)

All Funds (3)

90
89.625265
79
79.460518
64
63.820915

ETF.com Grade as 09/21/17

Commodities: Precious Metals Platinum

Tracking Difference (12 Month)

Ticker Expense Ratio Median Max. Upside Max. Downside Max LT/ST Cap Gains Rate Rule Legal Structure Fund Closure Risk Efficiency
PGM iPath Bloomberg Platinum Subindex Total Return ETN 0.75% -1.17% 1.05% -2.38% 20.00% / 39.60% High 63.820915
PPLT ETFS Physical Platinum Shares 0.60% -0.51% 2.91% -4.51% 28.00% / 39.60% Low 89.625265
PTM ETRACS UBS Bloomberg CMCI Platinum Total Return ETN 0.65% -- -- -- 20.00% / 39.60% High 79.460518

ETF.com Tradability Insight

PPLT is the only product in this segment that one can trade with any confidence. Luckily, it's a very liquid fund, with a median daily volume of over $3M and average spreads of 13 bps.PPLT is the only product in this segment that one can trade with any confidence It also earns a perfect block liquidity score, indicating that it can be bought at reasonable spreads in large blocks with the aid of a market maker.
The other two ETNs are more difficult to trade, especially so in large blocks. Both are closed to creations, meaning market makers can't create new shares to keep the notes trading close to their fair values. Both trade at thin volumes—typically far less than $100K for each fund. Bid/ask spreads between the two vary widely. PTM trades at an average spread of over 50 bps. PGM falls way behind the other two, as it trades at abysmal spreads exceeding 100 bps. Thus, even if you aren't worried about the note trading at a false premium (and you should be), it's still unappealingly illiquid. (Insight updated 09/25/17)

All Funds (3)

97
97.209095
38
37.957039
38
37.637709

ETF.com Grade as 09/21/17

Commodities: Precious Metals Platinum

Ticker Median Daily Volume ($) Average Spread Creation Unit/Day Market Hours Overlap Underlying Volume/Unit % Creation Cost Per Unit (%) Impediment to Creations Score - Tradability
PGM iPath Bloomberg Platinum Subindex Total Return ETN $4.85 K 2.31% 0.00 100.00% -- 0.00%% Potential 37.637709
PPLT ETFS Physical Platinum Shares $4.29 M 0.10% 0.96 100.00% -- 0.01% None 97.209095
PTM ETRACS UBS Bloomberg CMCI Platinum Total Return ETN $14.52 K 4.83% 0.02 100.00% -- 0.00%% Potential 37.957039
Spread History
Premium/Discount History

ETF.com/ Block Liquidity

PPLT
5
4
3
2
1
PGM
5
4
3
2
1
PTM
5
4
3
2
1

This measurement shows how easy it is to trade 25,000 shares of each ETF.

ETF.com Fit Insight

PPLT earns the best Fit score in the segment since it actually holds physical platinum. In contrast, the other two products are linked to futures contracts on platinum which are imperfectfor a direct and pure exposure to platinum, you simply cant beat PPLT. proxies of platinum spot prices. If futures are in backwardation (unlikely for platinum), PTM and PGM should beat PPLT, but if you're looking for a direct and pure exposure to platinum you simply can't beat PPLT. (Insight updated 09/25/17)

All Funds (3)

53
53
47
47
100
100

ETF.com Grade as 09/21/17

Commodities: Precious Metals Platinum