Top 10 Best Precious Metals and Minerals ETF include Gold, Silver, ETN, Short, and Leveraged 2011

Top 10 precious metals etf logo
Top 10 precious metals etf logo

In my previous article, I have provided the precious metal mutual fund. In this article, I’ll look into the Top 10 Popular Precious Metals and Minerals ETF (Exchange Traded Funds) and ETN (Exchange Traded Notes). Precious metals or minerals such as Gold, Silver, Palladium, and diamonds, should be part of investor’s diversification in their investment account. As described, there are four ways to invest in precious metals or minerals sector such as:

  1. Buy the precious metals such as gold coins, gold bars, silver coins, silver bars etc, or gems and store it in storage or safe.
  2. Buy or invest in precious metal mining company (exploration & producer companies) by buying the company common share stocks.
  3. Invest in precious metals mutual fund as well as precious metals or minerals ETF
  4. Invest in operators who purchase and hold gold or other precious metals.

If you are interested in precious metals mutual fund, please check my article:


Criteria and Top 10 list

Since most of the ETFs and ETNs are new, some of these ETFs and ETNs may be very volatile due to low volume and high bid-ask spread. Please always use limit order when place any trade for these ETFs and ETNs. Most of these ETFs are holding physical precious metals and minerals. The ETFs usually try to track the price movement of the precious metal. Compare to precious metals mutual fund, these precious metal ETFs are different because of this.

The Top 10 Popular Precious Metals and Minerals ETF and ETN:

  1. SPDR Gold Shares
  2. iShares Silver Trust
  3. iShares Gold Trust
  4. ETFS Physical Swiss Gold Shares
  5. ETFS Physical Palladium Shares
  6. ETFS Physical Platinum Shares
  7. ETFS Physical Silver Shares
  8. PowerShares DB Precious Metals
  9. PowerShares DB Gold
  10. PowerShares DB Silver

Precious Metals ETF Info - 12/11/2010

(click column header to sort results)
No  
ETF Fund Description  
Ticker  
Total Asset (Bil)  
Expense Ratio  
M* Rating  
1
SPDR Gold Shares
GLD
57.7
0.40%
5
2
iShares Silver Trust
SLV
10.2
0.50%
4
3
iShares Gold Trust
IAU
4.8
0.25%
5
4
ETFS Physical Swiss Gold Shares
SGOL
1.1
0.39%
NR
5
ETFS Physical Palladium Shares
PALL
0.76
0.60%
NR
6
ETFS Physical Platinum Shares
PPLT
0.69
0.60%
NR
7
ETFS Physical Silver Shares
SIVR
0.45
0.30%
NR
8
PowerShares DB Precious Metals
DBP
0.38
0.75%
NR
9
PowerShares DB Gold
DGL
0.32
0.75%
NR
10
PowerShares DB Silver
DBS
0.18
0.75%
NR
ETF Table Comparison

Fund Holdings

Click thumbnail to view full-size
SPDR GLD Overviewishares Silver Overview
SPDR GLD Overview
SPDR GLD Overview
ishares Silver Overview
ishares Silver Overview


1. SPDR Gold Shares - GLD

SPDR Gold Shares ETF seeks to imitate the price of gold bullion performance. The ETF trust holds gold, and is expected to issue baskets in exchange for deposits of gold, and to distribute gold in connection with redemption of baskets. To pay the trust expense, the trust will sold a basket of gold in the trust.

The primary portfolio consists of gold bullion commodity. As of December2010, the top holding is Physical Gold Bullion which is valued at 57 billion. The expense ratio is only 0.40% per year.

2. iShares Silver Trust SLV

The iShares Silver Trust ETF objective of the investment is to reflect the price of silver owned by the trust minus the trust's expenses and liabilities. The fund is intended to constitute a straightforward and cost-effective means of making an investment in silver. Although the fund is not the exact equivalent of an investment in silver, they provide investors with an alternative that allows a level of participation in the silver market through the securities market. Silver owned by the trust will be held by the custodian in England and other locations that may be approved in the future. The trust will issue and redeem isahres in blocks of 50,000 or integral multiples thereof.

As December 10, 2010, the trust has 351 million ounces of silver in trust. The total net asset is 10.13 Billion. The expense ratio is only 0.50% per year.

3. iShares Gold Trust - IAU

The iShares Gold Trust seeks to match generally to the day-to-day of price of gold bullion movement. The objective of the Trust is for the value to reflect, at any given time, the price of gold owned by the Trust at that time, less the expenses and liabilities of the Trust. The shares are backed by gold, identified on the custodian’s books as property of the Trust and held by the custodian in vaults in the vicinity of New York, Toronto, London and other locations.

As December 10, 2010, the trust has 3.47 million ounces of gold in trust. The total net asset is 4.7 Billion. The expense ratio is only 0.25% per year.


Fund Holdings

Click thumbnail to view full-size
ETFS Palladium OverviewETFS Platinum Overview
ETFS Palladium Overview
ETFS Palladium Overview
ETFS Platinum Overview
ETFS Platinum Overview

4. ETFS Physical Swiss Gold Shares

ETFS Physical Swiss Gold Shares ETF is issued by ETFS Gold Trust. The ETF investment objective is for the shares to reflect the performance of the price of gold bullion minus the expenses of the operations. The ETF shares are designed for investors who want a cost-effective and convenient way to invest in gold. The gold asset held in Zurich, Switzerland. The ETF represents beneficial interest in the Trust, which in turn holds allocated physical gold bullion bars stored in secure vaults in Zurich Switzerland on behalf of the Custodian, JPMorgan Chase Bank, N.A.,. All physical gold conforms to the London Bullion Market Association’s (LBMA) rules for Good Delivery.

As December 10, 2010, the trust has 4975.65 ounce in indicative basket of gold in trust. The total net asset is 1.1 Billion. The expense ratio is only 0.39% per year.

5. ETFS Physical Palladium Shares

ETFS Physical Palladium Shares ETF is designed to offer investors a simple, cost-efficient and secure way to access the precious metals market of the palladium spot price less fees. The investment is intended for investors who want a cost-effective and convenient way to invest and gain exposure into physical Palladium bullion. The trust holds allocated physical palladium bullion bars stored in secure vaults in London and Zurich on behalf of the Custodian, JPMorgan Chase Bank, N.A. All physical palladium conforms to the London Platinum and Palladium Market (LPPM) rules for Good Delivery.

As December 10, 2010, the trust has 4972.46 ounce in indicative basket of palladiumin trust. The total net asset is 0.76 Billion. The expense ratio is only 0.60% per year.

6. ETFS Physical Platinum Shares

ETFS Physical Platinum (PPLT) is designed to offer investors a simple, cost-efficient and secure way to access the precious metals market. PPLT is intended to provide investors with a return equivalent to movements in the platinum spot price less fees. The ETF trust holds allocated physical platinum bullion bars stored in secure vaults in London and Zurich on behalf of the Custodian, JPMorgan Chase Bank, N.A.,. Each physical plate and ingot is properly segregated, individually identified and allocated towards the property of the Trust. All physical platinum conforms to the London Platinum and Palladium Market (LPPM) rules for Good Delivery.


Fund Holdings

Click thumbnail to view full-size
PowerShares DBP OverviewPowerShares DBS Overview
PowerShares DBP Overview
PowerShares DBP Overview
PowerShares DBS Overview
PowerShares DBS Overview

7. ETFS Physical Silver Shares

ETFS Physical Silver Shares (SIVR) is designed to offer investors a simple, cost-efficient and secure way to access the precious metals market. SIVR is intended to provide investors with a return equivalent to movements in the silver spot price less fees. The ETF trust holds physical allocated silver bullion held in vaults by the Custodian (HSBC Bank USA N.A.). All physical silver held with HSBC conforms to the London Bullion Market Association’s (LBMA) rules for Good Delivery.

8. PowerShares DB Precious Metals - DBP

The PowerShares DB Precious Metals Fund is seeking to match the Deutsche Bank Liquid Commodity Index - Optimum Yield Precious Metals Index performance. The index is managed by DB Commodity Services LLC. The Index is a rules-based index composed of futures contracts on two of the most important precious metals—gold and silver. The index is intended to imitate the performance of the precious metals sector. PowerShares DB Precious Metals ETF is part of Invesco ETFs lineup.

As December 10, 2010, the trust holds roughly 80% of Gold futures and 20% of Silver futures. The total net asset is 0.38 Billion. The expense ratio is only 0.75% per year.

9. PowerShares DB Gold – DGL

The Fund is designed for investors who want a cost-effective and convenient way to invest in gold commodity futures. The PowerShares DB Gold Fund is based on the Deutsche Bank Liquid Commodity Index of Optimum Yield Gold Excess Return, also known as DB Gold Index. The index is managed by DB

Commodity Services LLC. The Index is a rules-based index composed of futures contracts on gold and is intended to reflect the performance of gold.

10. PowerShares DB Silver - DBS

The PowerShares DB Silver ETFis intended for investors who want a cost-effective and convenient way to invest in commodity futures of silver. The PowerShares DB Silver Fund is based on the Deutsche Bank Liquid Commodity Index of Optimum Yield Silver Excess Return, also known as DB Silver Index. The index is managed by DB Commodity Services LLC. The Index is a rules-based index composed of futures contracts on silver and is intended to reflect the performance of silver.


Bear ETF and Leveraged ETF

The following are various bear fund and leverage gold ETFs. These ETFs are only for trading (1-3 days) and not recommended for long term holding. The leveraged ETFs usually try to track the index twice or three times the commodity price movement during the day. It usually will reset the price every end of the day. Please trade responsibly with this Bear and Leveraged ETFs.

Bear Fund Precious Metal ETFs and ETNs:

  • E-TRACS CMCI Short Platinum ETN - PTD
  • PowerShares DB Gold Short ETN - DGZ
  • Leverage Precious Metal ETFs and ETNs:

Leveraged ETFs

a. Double Long Precious Metals ETF

  1. PowerShares DB Gold Double Long ETN - DGP
  2. ProShares Ultra Gold ETF - UGL
  3. ProShares Ultra Silver ETF - AGQ

b. Double Short Precious Metals ETF

  1. PowerShares DB Gold Double Short ETN - DZZ
  2. ProShares UltraShort Gold ETF - GLL
  3. ProShares UltraShort Silver ETF - ZSL

How to Buy ETF using Online Brokerages

You will need a brokerage to buy closed end funds (CEFs) such as:

  • eOption – You can trade stock and ETF for $3.00 per trade.
  • TradeKing – You can trade stock as well as ETF for $4.95 per trade. You can also trade mutual funds.
  • Marsco – Investors and traders can trade stock and etf for $3.95 per trade
  • SogoTrade - You can buy stock online and ETF for $3.00 per trade.


Disclosure: I have no affiliation with any of these ETFs. I also have no position in any of these ETFs. Please do your own research for additional details. Please trade and invest responsibly. Past Performance is No Guarantee of Future Results


Precious Metals and Minerals ETF Performance

No
ETF Fund Description
Ticker
3 Month
1 YR
3YR
5YR
1
SPDR Gold Shares
GLD
5.12%
29.40%
20.28%
22.33%
2
iShares Silver Trust
SLV
17.02%
30.10%
15.99%
N/A
3
iShares Gold Trust
IAU
5.18%
29.38%
20.24%
22.29%
4
ETFS Physical Swiss Gold Shares
SGOL
5.15%
29.35%
N/A
N/A
5
ETFS Physical Palladium Shares
PALL
28.05%
N/A
N/A
N/A
6
ETFS Physical Platinum Shares
PPLT
8.15%
N/A
N/A
N/A
7
ETFS Physical Silver Shares
SIVR
16.86%
30.17%
N/A
N/A
8
PowerShares DB Precious Metals
DBP
7.01%
28.11%
17.58%
N/A
9
PowerShares DB Gold
DGL
4.67%
27.91%
18.11%
N/A
10
PowerShares DB Silver
DBS
16.76%
29.47%
14.16%
N/A
11
ETFS Physical PM Basket Shares
GLTR
N/A
N/A
N/A
N/A
12
iPath DJ-UBS Platinum TR Sub-Idx ETN
PGM
8.40%
1.43%
N/A
N/A
13
UBS E-TRACS Long Platinum TR ETN
PTM
11.75%
14.58%
N/A
N/A
14
iPath DJ-UBS Prec Metals TR Sub-Idx ETN
JJP
19.78%
32.97%
N/A
N/A
15
E-TRACS S&P 500 Gold-Hedged Index ETN (SPGH)
SPGH
17.81%
N/A
N/A
N/A
16
E-TRACS CMCI Silver ETN
USV
45.68%
57.03%
N/A
N/A
17
E-TRACS CMCI Gold ETN
UBG
11.06%
22.00%
N/A
N/A

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2 comments

Daddy Paul profile image

Daddy Paul 5 years ago from Michigan

Good homework. I like your warnings on bear funds.


chan0512 profile image

chan0512 5 years ago from Camarillo, CA Author

Daddy Paul! Thanks for your kind words. I'm glad if you find the list to be useful. ETF is definitely the future in investing. Thanks for stopping by.

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