This Precious Metal Just Doubled Gold's Returns: Is PPLT or GLD a Better Buy?

SPDR Gold Shares (NYSEMKT:GLD) and abrdn Physical Platinum Shares ETF (NYSEMKT:PPLT) differ most in their metal focus, with PPLT charging a higher fee, showing greater five-year risk, and offering less liquidity due to its smaller assets under management.

GLD and PPLT both offer investors a straightforward way to access precious metals, but each tracks a different underlying commodity: gold for GLD and platinum for PPLT. This comparison looks at cost, recent performance, risk, and portfolio makeup to help clarify which may appeal depending on personal risk tolerance and commodity preference.

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.

PPLT comes with a higher annual fee than GLD, making the gold ETF more affordable for long-term holders. Yield is not a consideration for either fund, as both are designed purely for price exposure to their respective metals.

Performance & risk comparison

What's inside

PPLT is designed for investors seeking direct platinum exposure with minimal credit risk. The fund has existed for 16 years, offering a simple way to invest in platinum without physical delivery or futures contracts. Sector breakdown is not reported, and there are no details on top holdings, but like GLD, PPLT is structured to track the price of a single metal rather than a diversified basket. Its relatively small assets under management may affect trading liquidity for larger investors.

GLD, by contrast, provides 100% exposure to the basic materials sector via physical gold holdings. While details on its top holdings are not disclosed, GLD is the oldest and largest US-listed gold ETF, which contributes to its deep liquidity and broad acceptance among institutional and retail investors. Neither fund comes with leverage, currency hedge, or other quirks, keeping their strategies straightforward.

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What this means for investors

Precious metals staged an extraordinary rally in 2025, with gold and platinum both hitting record highs driven by geopolitical tensions, Federal Reserve rate cuts, and a weakening dollar. Platinum captured investor attention by delivering a staggering one-year return that more than doubled gold's impressive gain, as reflected in the performance of these ETFs.

PPLT holds physical platinum bars in vaults, while GLD does the same for gold, so these ETFs let you own precious metals without storing them yourself. The key difference shows up in their recent performance: Platinum's explosive gains came from severe supply shortages, particularly in South Africa where most platinum is mined, combined with steady industrial demand. Gold's more moderate climb reflected its role as the go-to safe haven during uncertainty. PPLT charges 0.60% annually versus GLD's 0.40%, and platinum historically swings much more dramatically than gold, making recent gains exciting but unpredictable.

Cautious investors wanting reliable protection against economic turmoil should choose GLD for gold's proven stability and universal acceptance as crisis insurance. Risk-tolerant investors willing to stomach wild price swings should explore PPLT, betting that platinum's supply crisis and industrial uses will drive further gains.

Glossary

ETF: Exchange-traded fund that trades on stock exchanges like a stock, holding underlying assets.
Expense ratio: Annual fund operating cost, expressed as a percentage of the assets you have invested.
Assets under management (AUM): Total market value of all assets managed by a fund or investment firm.
Beta: Measure of an investment’s volatility compared with the overall stock market, typically the S&P 500.
Total return: Investment performance including price changes plus any income, assuming all payouts are reinvested.
Max drawdown: Largest peak-to-trough decline in an investment’s value over a specific period.
Liquidity: How easily and quickly an investment can be bought or sold without significantly affecting its price.
Physical exposure: Fund structure where shares are backed by holdings of the actual underlying commodity or asset.
Credit risk: Risk that a borrower or counterparty will fail to meet its financial obligations.
Leverage: Use of borrowed money or derivatives to amplify investment exposure and potential returns or losses.
Currency hedge: Strategy used to reduce the impact of exchange-rate movements on investment returns.
Sector exposure: Portion of a fund’s assets invested in companies or assets within a particular industry category.

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.