Invesco Physical Palladium

ETF description

This ETF provides exposure to the price of palladium by holding physical palladium in secure storage. Palladium is a precious metal used in various industries, including automotive manufacturing, electronics, and jewelry. The fund’s value is directly linked to the market price of palladium, allowing investors to gain exposure to the commodity without the need to buy, store, or insure physical palladium themselves.

This ETF may appeal to investors looking to diversify their portfolios with commodities, particularly those interested in precious metals like palladium. This fund offers a way to participate in the palladium market while maintaining the flexibility and liquidity of an exchange‑traded product.

Issuer details

Invesco is one of the world’s largest ETF providers with over US$680 billion globally in ETF assets under management (as at 31 March 2024). It offers over 140 EMEA ETFs spanning regions and strategies across equities, fixed income and commodities.

Its culture of innovation lets it find new opportunities for investors, as well as ways to improve the performance of core ETF exposures.

Index details

This ETF tracks the price of Palladium, which is influenced by several factors.

Like most commodities, the balance between how much Palladium is available (supply) and how much people want to buy (demand) can affect its price. Also, in times of economic uncertainty or stock market fluctuations, investors may turn to Palladium as a ‘“safe haven”’, which can raise gold prices. As Palladium is priced in US dollars, the strength of key currencies, especially the U.S. dollar, impacts gold prices. Lower interest rates reduce the opportunity cost of holding non‑yielding assets like Palladium, potentially increasing its appeal and price.

These factors are interconnected, and can affect Palladium prices in complex ways.