Platinum and palladium have become the standout ETF trades of 2025.
The abrdn Physical Platinum Shares ETF (NYSE:PPLT) rose nearly 9% on Tuesday, while the abrdn Physical Palladium Shares ETF (NYSE:PALL) increased by 5.4%. Both funds reached 52-week highs as prices of the underlying metals continued their historic rally, before paring gains on Wednesday.
Although metals traded significantly lower on Wednesday, with palladium down almost 8% and platinum down almost 3% as of publication, prices have risen more than 85% this year for palladium and more than 140% for platinum. This performance places the two ETFs among the best commodity funds of 2025. PPLT alone is up nearly 150% from its 52-week low of $82.35. This makes it a strong option for investors looking to invest in platinum group metals (PGMs).
Also Read: The Year Precious Metals Crushed Nvidia, Alphabet And Broadcom On The Charts
ETF Structure In Focus
PPLT gives direct access to physical platinum bullion and tracks the LBMA Platinum Price PM, which is the London Bullion Market Association’s official afternoon benchmark. The fund has an annual expense ratio of 0.60%. Investor interest has increased as platinum prices reach their all-time high levels.
PALL, with a similar expense ratio, offers comparable physical exposure to palladium, which has reached its highest level since early 2023.
Why ETFs Are Catching Fire
The rise in both ETFs shows tighter conditions in the physical metals market, rather than short-term speculation. Supply disruptions, limited mine output, and high lease rates have kept availability low, while demand from the automotive sector remains strong.
Platinum and palladium are essential in catalytic converters, which reduce emissions in gasoline-powered vehicles. With policy signals indicating a less aggressive approach to electric vehicle adoption under the Trump administration, expectations for continued production of internal combustion engines have boosted demand for PGMs. This creates a positive environment for the ETFs.
Additionally, precious metals have generally performed well despite real U.S. interest rates being near multi-decade highs. This situation has surprised many investors. Japanese conglomerate Mitsubishi’s precious metals team observed that the rally seems driven by long-term positioning instead of speculative excess, with inventories increasing at major exchanges in both the U.S. and China, as reported by BullionVault.
For ETF investors, the mix of tight supply, industrial demand, and geopolitical uncertainty has led to lasting upward momentum. For now, PPLT and PALL are firmly in the fast lane, showing very few signs of slowing down.
Read Next:
Photo by yMediaStock via Shutterstock