Invest in Palladium with Palladium ETFs and ETNs
List of Palladium ETFs
With the recent launch of two new palladium ETFs there are now more options for investors who want to gain exposure to the precious metal, which can be used in dentistry, solder, water treatment and of course jewelry. And what better way to invest in palladium than with an exchange traded fund.
There are of course other ways to invest in the commodity, there are precious metal funds, which incorporate other metals, there are palladium futures, and you can even buy the commodity itself. However, for a convenient way to add palladium to your portfolio without having to worry about expirations or buying a safe, I recommend looking into a palladium ETF. And to help you with your research, here some funds to explore…
PALL - ETFS Physical Palladium Shares
This was the first palladium ETF and launched in January of 2010. According to the ETF provider, ETF Securities, the fund was designed to offer investors a simple, cost-efficient and secure way to access the precious metals market. PALL is intended to provide investors with a return equivalent to movements in the palladium spot price fewer fees.
The fund trades on the NYSE Arca and as of today is the only non-leveraged ETF targeting palladium as an underlying asset. It is also the only palladium exchange traded fund. For more information on PALL, you can check out the fact sheet on the ETFS website.
LPAL - 2x Long Palladium ETN - (NOW DELISTED)
While not an ETF, LPAL is another way to gain exposure to the price of palladium. The exchanged traded note targets the price of the precious metal, but unlike PALL, it seeks a leveraged return. The note tracks the S&P GSCI Palladium Index ER and was first launched on October 14th, 2011. Created by Velocity Shares, it uses derivatives and other assets to target twice the daily return of the underlying index.
For more information on LPAL, you can check out the fact sheet on the Velocity Shares website. And if you want to learn more about Leveraged ETFs, here is some more information…
IPAL - 2x Inverse Palladium ETN - (NOW DELISTED)
IPAL is the inverse version of LPAL. It tracks the same underlying index, was launched on the same date, was issued by the same ETF provider, is a 2x leveraged note, and utilizes derivatives to accomplish its goal. The only difference is that it moves in the opposite direction as LPAL and the correlating index.
For more information on IPAL, you can check out the fact sheet on the VelocityShares website (see link above). And if you want to learn more about Leveraged ETFs, here is some more information…
So while there is not a slew of exchange-traded products (ETPs) to select for your palladium investment strategy, there are some decent choices…and variety. You can go long on the commodity, you can target a leveraged return and you can implement an inverse strategy as well.
And hopefully as we move forward, there will be more products to add to this list, so it will be updated. In the meantime, there are other types of precious metal funds to target as well. From gold, to silver, to platinum, to copper, you have some choices…
And don’t forget about your other commodity ETF options, from energy to oil to agriculture, there are ETFs to fit your commodity investing strategy. So you can check out some of these as well. But as always, do not forget to conduct thorough research and your due diligence. And do not hesitate to consult your broker before you make any trades.
Disclaimer: At the time of publication of this ETF list of Palladium ETFs, I do not have any open positions in the above funds - Mark Kennedy +Mark Kennedy