This is a commodity ETF that holds physical platinum stored in London vaults and tracks the platinum spot price (the LBMA Platinum Price). It has a single precious metal structure and holds only platinum.

It suits investors who want direct exposure to platinum among precious metals in order to diversify their portfolios.

It is a passively managed ETF (index tracking) run by GraniteShares.

The fund tracks the platinum spot price by holding physical platinum bars stored in vaults located in London. It holds only the physical metal and uses no derivatives, its holdings are disclosed daily, and the vaults are audited regularly. The structure is simple: platinum price movements are reflected directly in the fund's price.

• Holds only physical platinum, with no derivatives
• Holdings disclosed daily and audited regularly

Assets under management (AUM) stand at $150.5M, and the total expense ratio is 0.50% per year.

Unlike gold ETFs such as GLD and IAU or the silver ETF SLV, it offers exposure to platinum, a separate precious metal, which sets it apart in terms of asset class diversification.

Platinum prices fluctuate under the combined influence of industrial demand and precious metal investment demand, and they sometimes move differently from gold and silver. Because industrial demand such as automotive catalysts accounts for a large share, the metal tends to be sensitive to the economic cycle.

Fund flows in and out occur depending on demand for precious metal diversification and the outlook for platinum supply and demand. Because the market is smaller than those for gold and silver, fund flows tend to be relatively volatile. Demand shifts with the macro environment and the industrial cycle.

Its strength is a simple structure with direct exposure to physical platinum, while its weaknesses are concentration in a single precious metal and dependence on industrial demand.

PPLT is a direct substitute with exposure to the same platinum spot price, allowing you to compare differences in fees and issuers. To broaden exposure to other precious metals, you can also consider PALL, which is exposed to palladium, GLTR, which holds several precious metals together, and DBP, a precious metals basket product. The GLD, IAU, and SLV shown in the table are comparison products with exposure to gold and silver.

These are the points to review before investing in PLTM. Because it is a product with direct exposure to physical platinum, it is worth checking the characteristics of the asset class, its costs, and its industrial demand structure in advance.

Concentration in platinum alone limits diversification, and the large share of industrial demand means volatility can rise during an economic slowdown. Investors should also note that, with no dividends, returns depend solely on price changes.

It is well suited as a way to add a platinum weighting to a precious metals portfolio. To compare costs for the same platinum exposure, consider PPLT, and to broaden precious metal diversification, you can also review PALL and GLTR.