2 Ways to Play the Surging Precious Metals Rally: SLVP and PPLT

The iShares MSCI Global Silver and Metals Miners ETF (NYSEMKT:SLVP) and abrdn Physical Platinum Shares ETF (NYSEMKT:PPLT) differ sharply in structure, volatility, and recent returns, with SLVP investing in miners and PPLT tracking platinum prices directly.

Both SLVP and PPLT offer targeted exposure to precious metals, but their approaches and risk profiles diverge. This comparison highlights the practical differences between holding a basket of mining companies versus a fund that seeks to mirror the price of platinum bullion, helping investors decide which may better suit their objectives.

Snapshot (cost & size)

Beta measures price volatility relative to the S&P 500; beta is calculated from five-year weekly returns. The 1-yr return represents total return over the trailing 12 months.

SLVP is more affordable on fees, charging 0.39% annually versus PPLT's 0.60%, though PPLT commands a much larger asset base of $2.86 billion while SLVP has $950.3 million.

Performance & risk comparison

What's inside

PPLT is structured to closely track the price of platinum, offering exposure without equity or company-specific risk. The fund has over $2 billion in assets under management and a 16-year history, but does not disclose a sector breakdown or top holdings since it holds physical platinum rather than stocks or bonds. Its focus is singular, aiming for a direct link to platinum market performance.

SLVP, in contrast, invests in a global basket of around 30 mining companies, all in the basic materials sector. Top positions include Hecla Mining (NYSE:HL), Indust Penoles (PE&OLES.MX), and Fresnillo Plc (LSE:FRES), making it more diversified within the metals mining industry. This approach may introduce company and operational risks not present in a physically backed commodity fund like PPLT.

For more guidance on ETF investing, check out the full guide at this link.

What this means for investors

With precious metals surging to record highs in 2025, both of of these metals ETFs have crushed the market in the last year, with PPLT returning around 135% and SLVP returning over 200%. Silver and platinum are rallying alongside gold right now as investors seek safe-haven assets amid persistent inflation, expectations of Federal Reserve rate cuts, and a weakening U.S. dollar.

While their approaches differ significantly, both of these ETFs suit investors seeking inflation protection or portfolio diversification through precious metals exposure. Choose PPLT if you want straightforward exposure to platinum prices without worrying about individual companies, since it simply tracks the metal's movements. Choose SLVP if you're comfortable with higher volatility and believe mining companies will outperform the underlying metal. Just understand you're taking on business risk alongside commodity risk.

Both ETFs have delivered exceptional gains in the last year, but keep in mind that past performance doesn't guarantee metals will continue rising at this pace.

Glossary

ETF: Exchange-traded fund that trades on stock exchanges and holds a basket of assets.
Expense ratio: Annual fund operating costs expressed as a percentage of the fund's average assets.
Assets under management (AUM): Total market value of all assets managed by a fund or investment firm.
Dividend yield: Annual dividends paid by a fund divided by its current share price.
Beta: Measure of a fund's volatility compared with the overall stock market, typically the S&P 500.
Max drawdown: Largest peak-to-trough decline in an investment's value over a specific period.
Total return: Investment performance including price changes plus all dividends and distributions, assuming reinvestment.
Physically backed commodity fund: Fund that holds the actual commodity, such as platinum bullion, rather than futures or stocks.
Mining ETF: ETF that invests primarily in shares of mining companies instead of the underlying metals.
Sector breakdown: Allocation of a fund's holdings across different industries or sectors of the economy.
Top holdings: The largest individual positions in a fund's portfolio, usually listed by weight.
Drawdown risk: Risk that an investment experiences a significant decline from its previous peak value.

Sara Appino has no position in any of the stocks mentioned. The Motley Fool recommends Fresnillo Plc. The Motley Fool has a disclosure policy.