SIVR vs. PPLT: Riding Silver and Platinum's Explosive 2025 Rally

The Abrdn Physical Silver Shares ETF (NYSEMKT:SIVR) charges less and manages more assets, while the Abrdn Physical Platinum Shares ETF (NYSEMKT:PPLT) has seen smaller drawdowns over the past five years.

Both SIVR and PPLT are physically backed precious metals funds offered by Aberdeen Investments, designed to give investors simple exposure to silver or platinum. This comparison highlights differences in cost, risk, liquidity, and returns for those weighing silver versus platinum in their portfolios.

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.

SIVR is more affordable with an expense ratio of 0.30%, compared to PPLT’s 0.60%. That cost difference could appeal to long-term investors looking to minimize fees, especially given SIVR’s higher assets under management.

Performance & risk comparison

What's inside

PPLT is a single-asset ETF backed by physical platinum, aiming to provide investors with cost-effective access to platinum price movements while minimizing credit risk. The fund has no reported sector breakdown or notable top holdings, as it holds only platinum bullion, and has been in operation for 16 years. PPLT does not report any unique structural quirks or tracking index.

SIVR, similarly, tracks the price of physical silver and does not report sector exposure or individual holdings, functioning as a straightforward play on silver prices. Both funds are designed for investors who want direct commodity exposure without the complexity of storing and insuring the metals themselves.

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What this means for investors

SIVR and PPLT track the spot prices of physical silver and platinum, respectively, by holding metal bars in secure vaults. Over the past year, both ETFs crushed the S&P 500's roughly 20% gain, but silver's return significantly outpaced platinum's surge. Silver benefits from dual demand as both an investment asset and a critical industrial metal used heavily in solar panels and electronics. Platinum, one of earth's rarest metals, saw its rally driven by supply constraints and automotive demand, among other factors.

PPLT charges a 0.60% expense ratio, double SIVR's 0.30% fee, reflecting platinum's higher storage and handling costs due to its extreme rarity. Neither fund pays dividends since they hold physical metal in secure vaults rather than generating income. Both funds are substantially smaller than their gold counterparts, with SIVR holding roughly $5.4 billion in assets compared to PPLT's $2.8 billion.

Precious metals ETFs make sense if you're looking to diversify beyond stocks and bonds or hedge against inflation and currency concerns, though you should be prepared for significant volatility. If you want exposure to the precious metal with the broadest industrial applications and more established market liquidity, silver's manufacturing demand and renewable energy tailwinds make SIVR an accessible choice. But if you're betting on supply scarcity and automotive demand continuing to support prices for one of the planet's rarest elements, platinum's structural deficits and smaller market make PPLT a compelling if more volatile option.

Glossary

ETF: Exchange-traded fund that trades on stock exchanges like a stock and holds underlying assets.
Expense ratio: Annual fund fee, expressed as a percentage of assets, covering management and operating costs.
Assets under management (AUM): Total market value of all assets a fund or manager oversees.
Physically backed fund: An ETF that holds the actual commodity, like bullion, rather than using derivatives or futures contracts.
Drawdown: The percentage decline from an investment’s peak value to its subsequent lowest point over a period.
Max drawdown: The largest observed peak-to-trough decline in an investment’s value during a specified time frame.
Beta: A measure of an investment’s volatility compared with a benchmark index, often the S&P 500.
Total return: Overall investment return including price changes plus any income, assuming all payouts are reinvested.
Liquidity: How quickly and easily an asset or fund can be bought or sold without significantly affecting its price.
Tracking index: A benchmark index a fund aims to replicate or follow in performance and composition.
Credit risk: The risk that a counterparty or issuer cannot meet its financial obligations to investors.
Commodity exposure: Investment exposure to raw materials like metals, energy, or agricultural products, usually through futures or physically backed funds.

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