For the 2nd year in a row, the ETFS Physical Palladium (ETPMPD) was the best performing ETF over the last year. It is an Exchange Traded Commodity (ETC) and tracks the performance of the price of Palladium.
This metal is used in a range of activities such as an auto catalysts for automobiles (to reduce carbon emissions), dental fillings, and jewelry. ETPMPD returned 90.2% over the last year as the demand for this precious metal continues to grow. ETPMPD has returned over 25% p.a. since 2008.
Gold was a strong performing sector, as investors piled money into the precious yellow metal on the back of uncertainty surrounding the coronavirus and record low interest rates. The precious yellow metal can give investors diversification benefits as gold is uncorrelated to traditional assets like shares. The ETFS Physical Gold (GOLD) and Perth Mint Gold (PMGOLD) were up 43% for the year. Physical gold outperformed gold mining companies which also delivered a strong return of 23% for the last year.
GOLD is the ETF we recommend for our clients to provide exposure to physical gold, as we believe it’s the best gold ETF. Here’s Why we think gold is an important portfolio diversifier
ETFS Precious Metals Basket (ETPMPM) holds a basket of metals such as gold, palladium, silver and platinum, which has helped the ETF finish 4th best for the year.
Healthcare was the top performing sector in Australia with a gain of 37.8%, while consumer staples was up 11.4%. All other sectors posted negative returns with defensive sectors such as utilities (-9.1%) and communication services (-8.2%) fairing best over the last year.
|ASX Code||ETF Name||1 Year Total Return|
|ETPMPD||ETFS Physical Palladium||90.2%|
|GOLD||ETFS Physical Gold||43.1%|
|PMGOLD||Perth Mint Gold||42.9%|
|ETPMPM||ETFS Precious Metals Basket||41.5%|
|GDX||VanEck Vectors Gold Miners ETF||23.1%|
See what the Worst ETF Performers were over the last year.