WisdomTree Physical Precious Metals UCITS ETF
Other precious metals, such as palladium and platinum, are also worth a look. These metals are frequently used in industry applications, such as the car and aerospace industries as well as electronics. However, they can be more vulnerable to fluctuations in the economic cycle than gold. The price of palladium has been volatile and performed poorly over the past three years due to the semiconductor chip shortage and hawkish economic outlook. The price of platinum, however, has remained more robust over the past year. One way to gain exposure to these metals is via WisdomTree’s exchange-traded commodity fund. The fund aims to deliver returns equivalent to the movement of physical precious metals spot prices after fees.
It is backed by physical precious metal bars, such as palladium and platinum, which are held by the fund’s custodian HSBC in London. Only those bars which conform to London Bullion Market Association’s (LBMA) and London Platinum and Palladium Association’s (LPPM) rules for good delivery are accepted by the fund. Meanwhile, the ETF is also UCITS, ISA and SIPP eligible. The fund has delivered returns of 3.7% over three years and -1.1% over one year, while the expense ratio is 0.44%.
Precious metals ETFs can offer a useful hedge against inflation and a safe haven from economic woes as part of a balanced investment portfolio. However, it’s worth remembering that the price of gold, silver, palladium and other precious metals can be volatile. If the economy improves, the gold price may fall. Only invest money you can afford to lose.
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