10 Best Precious Metals ETFs

There are dozens of ETF choices but not all of them are different. Smart investors know that they need a portfolio that allows them exposure to precious metals. This is because paper money is unstable and falling in value all the time plus there is the small matter of rising inflation.

The dollar has become weak in the last few years and with almost all commodities valued in dollars, prices become inflationary under pressure. We have come up with the best precious metals ETFs and though some may be repetitive, there are enough options available for smart investors to choose from.

Although precious metals are increasing in value despite the recent correction, another reason to invest in them is to counteract the damage done by poor fiscal policies. There is no actual order in this best 10 ETFs so don’t assume one ETF is better than another. Some markets are more volatile than others and may require a shorter-term outlook. Usually, commodity investing requires lots of action to be effective but at the moment, investors in gold see it as a long-term choice.

The 10 best precious metals ETFs:

SPDR Gold Trust (GLD)

This is one of the best ETFs in terms of size and is the holder of gold bars and occasionally gives out Baskets while expecting gold deposits in return. The YTD Return in August 2011 was 27% for the year to date.

iShares Gold Trust (IAU)

J.P Morgan Chase holds gold on behalf of this trust. It has been in existence since January 2005, has an expense ratio of 0.25% and has yielded a 28% return at August 2011. Its AUM is $9 billion with 10 million shares traded daily.

Swiss Gold Trust (SGOL)

J.P Morgan Chase is again the keeper of this trust with gold bars stored in Zurich. This fund has been active since September 2009 and has an expense ratio of 0.39%. The return for the year was at 27.8% by August 2011. The total AUM is $1.7 billion with 222,000 shares traded per day.

PowerShares DB Gold Fund (DGL):

This fund has been available since January 2007 with an expense ratio of 0.5%. DGL has a return of 27% to date in 2011, has AUM of $370 million with 90,000 shares traded per day.

iShares Silver Trust (SLV):

Yet again, J.P Morgan Chase is the head of this trust with its London branch doing the honors withthis silver fund. It has been available since April 2006 and the expense ratio is set at 0.5%. At present, the AUM is $12 billion with 157,000 shares traded every day.

Physical Silver Shares (SIVR):

This is a silver fund that was first launched in July 2009 and has an expense ratio of 0.3%. There are 550,000 shares traded a day with an AUM of $760 million.

Physical Platinum ETF (PPLT):

This holds platinum bullion bars in Zurich and London. The fund was created in January 2010 and has an expense ratio of 0.6%. The yield for 2011 is just 3% to date with 66,000 shares traded daily and an AUM of $865 million.

ETFS Physical Palladium Shares (PALL):

This palladium fund was created in January 2010 and has an expense ratio of 0.6%. The annual return was -5.7% in August 2011 with 165,000 shares traded daily and an AUM of $685 million.

PowerShares DB Precious Metals (DBP):

This precious metals fund is 80% gold and 20% silver. It was created in January 2007 and has an expense ratio of 0.75%. Its annual return was 28.3% at August 2011 with 150,000 shares traded daily and an AUM of $684 million.

iPath Precious Metals (JJP):

Concentrates on gold and silver with a ratio of 73:26 in favor of gold. It was created in June 2008 and has an expense ratio of 0.75%. The annual return at August 2011 was 28.7% with 22,000 shares traded daily and an AUM of $140 million. This is one of the best precious metal ETFs when it comes to return on investment.