abrdn Physical Precious Metals Basket Shares ETF (GLTR)

abrdn Physical Precious Metals Basket Shares ETF (GLTR) Summary

Profile:

• Focus: Precious metals basket (gold, silver, platinum, and palladium)
• Asset allocation: 90% in physical gold bars, 5% in physical silver bars, and 2.5% each in physical platinum and palladium bars
• Investment strategy: Seeks to replicate the performance of the Solactive Physical Precious Metals Basket Index

Objective:

• The ETF aims to provide investors with a convenient and cost-effective way to gain exposure to precious metals.
• It seeks to track the price movements of gold, silver, platinum, and palladium.

Issuer:

• iShares, a global asset manager, founded in 1995.
• It is part of BlackRock, the world's largest asset manager with a strong reputation and track record.
• The management team of GLTR has extensive experience managing various precious metal ETFs.

Market Share:

• As of June 30, 2023, GLTR had a AUM of $125 million, placing it among the smaller precious metal ETFs on the market.
• Its ETF peers include SPDR Gold Shares (GLD), iShares Silver Trust (SLV), and Aberdeen Standard Physical Palladium Shares ETF (PALL).

Financial Performance:

• GLTR was launched in April 2023, so its historical data is limited.
• However, since inception, it has closely tracked the Solactive Physical Precious Metals Basket Index with an average tracking error of less than 0.1%.
• Its net asset value per share is roughly in line with other precious metal ETFs with similar holdings.

Growth Trajectory:

• The demand for precious metals as a safe haven asset has grown over the past few years due to geopolitical uncertainty and inflation concerns.
• GLTR is well-positioned to benefit from continued interest in precious metals, especially if the market volatility continues.

Liquidity:

• Average daily trading volume of GLTR around 15,000 shares.
• Bid-ask spread averaged around $0.01.
• This indicates reasonable liquidity for smaller investors.

Market Dynamics:

• Factors affecting GLTR include global economic conditions, monetary policy, inflation, and geopolitical risks.
• Precious metals tend to perform well during periods of high inflation and uncertainty.

Competitors:

• Key competitors include:
  • GLD: Market share of 80%
  • SLV: Market share of 10%
  • PALL: Market share of 2%

Expense Ratio:

• GLTR's expense ratio is 0.39%, which is slightly higher than its main competitors.

Investment Approach and Strategy:

• GLTR passively tracks the index by holding physical precious metals in proportion to their weights in the index.
• It does not engage in active trading or leverage.

Key Points:

• Provides broad exposure to a basket of precious metals.
• High transparency and liquidity.
• Low expense ratio compared to some larger competitors.

Risks:

• Precious metals prices are highly volatile.
• GLTR's performance is directly linked to movements in the underlying metal prices.
• There is a risk of tracking error compared to the index.

Who Should Consider Investing:

• Investors looking for exposure to precious metals as a hedge against inflation or market volatility.
• Investors with a long-term investment horizon.
• Investors comfortable with higher volatility.

Fundamental Rating Based on AI (1-10):

8/10

• Strengths: Strong brand recognition, experienced management team, passive management strategy, low expense ratio compared to some competitors.
• Weaknesses: Limited track record, smaller market share than major competitors, high volatility.
• Future Prospects: Growth potential due to rising precious metal demand.

Resources and Disclaimers:

• Disclaimer: This is not financial advice. Please do your own research before making any investment decisions.
• Data sources: iShares website, Bloomberg, ETFDB.com

Please note that this summary is intended to provide a broad overview of abrdn Physical Precious Metals Basket Shares ETF.

Please remember, this information should not be solely relied upon to make investment decisions, and investors should consult with a financial professional.