PPLT Delivers Bigger Gains Than AAAU but Swings More Widely

Core Insights - The Goldman Sachs Physical Gold ETF (AAAU) and the abrdn Physical Platinum Shares ETF (PPLT) provide distinct exposures to gold and platinum, respectively, catering to different investor goals and risk tolerances [2] Cost & Size - AAAU has an expense ratio of 0.18% compared to PPLT's 0.60%, making AAAU more affordable for long-term holders [3][4] - As of January 2026, AAAU has assets under management (AUM) of $2.6 billion, while PPLT has AUM of $2.0 billion [3] Performance & Risk Comparison - Over the past year, PPLT has delivered a return of 136.0%, significantly higher than AAAU's 68.9% [3][9] - The maximum drawdown over five years for AAAU is -20.94%, while PPLT has a steeper drawdown of -35.73% [5] - A $1,000 investment in AAAU would have grown to $2,416 over five years, compared to $2,068 for PPLT [5] Fund Characteristics - PPLT is a physically backed ETF with a 16-year track record, focusing on providing direct platinum exposure with minimal credit risk [6] - AAAU, while classified under real estate, offers exposure to gold and is also physically backed, without unique structural quirks [7] Investor Implications - PPLT's higher one-year return comes with greater risk, as indicated by its five-year drawdown, while AAAU's lower expense ratio may appeal to cost-conscious investors [9] - The growing interest in precious metals has led to increased attention on both ETFs, particularly as gold prices reach record highs [10]