PPLT – ETFS Physical Platinum Shares review
Tracks the price of physical platinum
Management fee (expense ratio): 0.60%
One share is entitled to approximately 0.1 ounce of platinum
Net Asset Value (January 2012): $662 million
The daily chart for PPLT from mid-2010 to early 2012.
This was the first platinum ETF that was backed by physical metal. It was launched in January of 2010, and holds platinum in the form of bullion and ingots. The precious metal is securely stored in London and Zürich of behalf of the custodian, JP Morgan Chase Bank. The bars and ingots are individually identified and segregated. The platinum is inspected biannually by an independent assayer.
This ETF is designed for investors who wish to invest in platinum in a convenient and cost-effective way. One of the main points is that the transaction costs for buying and storing the shares will be considerably lower than acquiring, storing and insuring the physical platinum. It reliably tracks the platinum price.
The liquidity of this platinum ETF is good, and average trade volume is around 80 000 shares. The ETF shares are traded on an exchange like a stock or any other exchange-traded investment security.
The structure allows for shares to be created and redeemed based on market conditions.
It is in the nature of this physically-backed platinum ETF to not be diversified. Concentration risk is thus 100%.
Platinum-ETF.net comment: This is the first and only physically-backed platinum ETF available to investors today (2012). It is also by a wide margin the largest and most liquid platinum ETF, and provides investors with an easy, convenient, safe and liquid way of investing in platinum without having to hold, buy, store and insure physical metal. The expense ratio of 0.60 % is low compared to mutual funds and to the cost of holding physical platinum.
PPLT is listed on several exchanges, and trades on NYSE Arca in the US.
Buying and selling this ETF is as easy as buying any other stock, and makes the PPLT arguably the best way of investing in platinum.
Platinum-ETF.net grade: A