GLTR weights exposure to these four metals in a fixed fashion. Approximately 50% of its portfolio is dedicated to gold while the remaining 50% is spread across silver, platinum and palladium. This is done to ensure that investors maintain exposure to all four metals while at the same time protecting against the volatility inherent in components such as palladium.
Although it is still relatively new to the industry, GLTR has already managed to gain an impressive following and currently trades hands over 100,000 times each day.
DBP and GLTR are designed for investors who remain uncertain about the future of precious metals. By diversifying across a collection of these commodities, investors do not need to worry about whether or not gold outperforms silver or platinum outperforms palladium. Instead, both funds will benefit from general strength across the industry as a whole.
Written by Don Dion in Williamstown, Mass.