Exchange-Traded Funds (ETFs) have reshaped the landscape of investing, providing diversified exposure across different sectors and asset classes. In this article, we will conduct a thorough comparison between two prominent ETFs: GLD (SPDR Gold Trust) and PALL (Aberdeen Standard Physical Palladium Shares ETF). Our exploration will encompass key areas including ETF tickers, full names, issuers, sectors, top holdings, capitalization, strategy, tracking, and exposure.
GLD and PALL are two distinct ETFs that cater to investors with varying interests within the precious metals market. While GLD focuses on tracking the price of gold, PALL is designed to follow the price of palladium. This difference in underlying assets contributes to their individual risk and return profiles, which we will delve into in the ensuing sections.
The GLD ETF centers its holdings on physical gold, with its primary asset being gold bullion. In contrast, PALL is invested in palladium, a rare and valuable precious metal used in various industrial applications. PALL's holdings primarily consist of palladium bars held in secure storage. Understanding the sectors and top holdings of these ETFs aids investors in aligning their investment objectives with the appropriate ETF choice.
GLD overlap GLD VS PALL: A Comprehensive Comparison of ETFs
GLD boasts substantial assets under management (AUM), reflecting its popularity among investors seeking exposure to the enduring value of gold. PALL, on the other hand, provides a gateway to the palladium market, a metal with unique supply-demand dynamics. The difference in capitalization and investment strategy between GLD and PALL contributes to the divergence in potential returns and associated risks.
The tracking methodologies of GLD and PALL diverge due to the distinct nature of their underlying assets. GLD's aim is to closely follow the price movements of gold by holding physical gold bars in secure vaults. PALL, as an ETF focused on palladium, aims to replicate the performance of palladium prices. Investors should take into account these variations in tracking and exposure methods when selecting an ETF that aligns with their investment goals.
GLD and PALL offer investors specialized avenues to participate in the precious metals market, each focusing on a unique metal—gold and palladium, respectively. For those seeking deeper insights into holdings, correlations, overlaps, and other valuable information, the ETF Insider tool stands as an invaluable resource. With its user-friendly interface, the tool facilitates a comprehensive exploration of these and other financial instruments, aiding investors in making informed decisions.
Disclaimer: This article does not provide any investment advisory services.
Sources:
GLD ETF issuer
GLD ETF official page
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