Comparing the Best Precious Metals ETFs: GDX vs PPLT Performance

When seeking exposure to precious metals through the best precious metals ETF options, investors face a critical choice between different structures and strategies. The VanEck Gold Miners ETF (GDX) and abrdn Physical Platinum Shares ETF (PPLT) have emerged as two compelling choices for those targeting the precious metals sector, yet their fundamental approaches diverge significantly. Understanding their distinct characteristics is essential for making an informed investment decision.

Dramatic One-Year Returns with Different Risk Profiles

Both funds have delivered exceptional recent performance. PPLT achieved a one-year return of 190.64% as of late January 2026, while GDX posted 185.16% over the same period—returns that underscore precious metals’ strong market positioning in the current environment. However, these similar headline figures mask important differences in how each fund achieves its results.

The risk profiles tell a different story. GDX exhibits a beta of 0.64 relative to the S&P 500, indicating lower volatility than the broader market despite its sector focus. PPLT, meanwhile, shows an even lower beta of 0.34, reflecting platinum’s relatively stable price behavior compared to equity indices. Over a five-year window, GDX has delivered $2,587 on an initial $1,000 investment, while PPLT returned $2,133—a meaningful difference that reflects the mining sector’s outperformance over physical metal holdings.

Cost, Size and Dividend Considerations

Size and liquidity matter significantly for ETF investors. GDX commands substantially more assets under management at $30.36 billion compared to PPLT’s $3.52 billion, providing tighter spreads and easier entry and exit for positions of any size. This scale advantage supports GDX’s operational efficiency despite carrying a slightly lower expense ratio of 0.51% versus PPLT’s 0.60%.

One critical distinction for income-focused investors: GDX pays an annual dividend yield of 0.59%, rewarding shareholders with regular distributions. PPLT, by contrast, offers no dividend component—all returns derive purely from platinum price appreciation. For those seeking yield alongside precious metals exposure, this feature tips the scale toward GDX as the more complete investment vehicle.

Gold Miners vs Physical Platinum: Fund Composition

The two funds employ fundamentally different investment mechanics. GDX functions as an equity-focused vehicle, tracking a global index of gold mining companies. Its top three holdings include Agnico Eagle Mines Ltd. (AEM), Newmont Corp. (NEM), and Barrick Mining Corp. (B), with remaining positions each comprising less than 5% of the portfolio. This diversified miner exposure means investors’ returns depend on both metal prices and these companies’ operational performance.

PPLT takes an entirely different approach, holding physical platinum rather than mining stocks. This direct exposure strategy provides a pure play on platinum’s spot price without company-specific operational risks. The fund boasts a 16-year track record within this niche. Over the past year, platinum’s price range has fluctuated between $82.79 and $225.71, illustrating the significant volatility investors must tolerate for this concentrated bet.

Volatility and Five-Year Growth Trajectories

Maximum drawdown analysis reveals platinum’s somewhat smoother ride compared to mining equities. PPLT experienced a five-year peak-to-trough decline of -35.73%, while GDX saw steeper losses at -46.52%. This difference suggests platinum absorbs market stress somewhat more gracefully than mining stocks, though both experienced meaningful corrections during that period. For risk-averse investors, PPLT’s lower volatility profile may appeal despite its lower aggregate returns.

Why These Precious Metals ETFs Appeal to Different Investors

Choosing between these options depends on individual investment objectives. Those seeking the best precious metals ETF for direct commodity exposure with lower volatility should consider PPLT’s straightforward platinum structure. Its 16-year operational history and stable price behavior provide a foundation for conservative precious metals allocations.

Conversely, investors willing to embrace equity volatility in exchange for superior growth potential may find GDX more suitable. Its larger size, dividend payments, and exposure to mining innovation align better with growth-oriented portfolios. The mining companies within GDX’s holdings benefit not only from rising precious metal prices but also from operational improvements and exploration success.

For many investors, the investment case for precious metals generally rests on their perceived role as an inflation hedge and portfolio diversification tool. Precious metals typically appreciate when the U.S. dollar weakens or economic uncertainty rises—a characteristic that has proven valuable during recent market volatility. Platinum’s relative rarity—estimated to be at least 10 times scarcer than gold despite lower consumer awareness—suggests potential long-term value appreciation as supply constraints persist.

A critical caveat: the exceptional 2025 returns achieved by both precious metals ETFs may prove difficult to replicate in 2026 and beyond. These funds benefited from a historically favorable environment that may not sustain without significant geopolitical escalation or accelerating currency devaluation. Investors should avoid extrapolating recent performance and instead evaluate these best precious metals ETF options based on their individual risk tolerance, income requirements, and time horizon.

For those prioritizing stability and direct commodity ownership, PPLT offers an elegant solution. For investors seeking diversification through mining equity exposure and dividend income, GDX presents a more complete package. The choice ultimately depends on whether your precious metals allocation emphasizes price appreciation potential or portfolio insurance characteristics.