Which Precious Metals ETF Will Rise and Shine in Your Portfolio? A Deep Dive into GDX vs PPLT

The precious metals sector delivered extraordinary returns in 2025, with both the VanEck Gold Miners ETF (GDX) and abrdn Physical Platinum Shares ETF (PPLT) posting triple-digit gains that caught many investors’ attention. However, not all gains are created equal, and the path these two funds took to rise significantly tells very different stories about precious metal investing. Understanding which vehicle might shine brightest for your specific needs requires looking beyond the headline returns to examine their underlying structures, costs, and risk characteristics.

Performance That Makes Investors Rise: Breaking Down GDX and PPLT’s 2025 Gains

Both funds delivered impressive one-year returns as of late January 2026, with PPLT marginally outperforming GDX: PPLT achieved a 190.64% total return compared to GDX’s 185.16%. This near-parallel trajectory masks fundamentally different drivers. GDX benefits from both gold mining company stock appreciation and dividend distributions, while PPLT gains purely from platinum’s spot price movement.

When examining longer-term volatility, the contrast becomes starker. Over a five-year period, GDX experienced a maximum drawdown of -46.52%, while PPLT’s worst decline reached -35.73%. Yet GDX’s $1,000 investment grew to $2,587 over five years, outpacing PPLT’s $2,133—demonstrating that higher volatility can coincide with superior long-term wealth accumulation in commodity-linked investments.

The beta measurements reveal how differently these funds respond to broader market movements. GDX’s beta of 0.64 indicates less volatility relative to the S&P 500, while PPLT’s significantly lower beta of 0.34 positions it as a more defensive asset. This distinction matters for portfolio construction: GDX provides some equity market correlation, while PPLT functions primarily as a pure commodity hedge.

Two Distinct Approaches to Precious Metal Investing: What Sets Them Apart

The structural differences between these funds go to the heart of how they generate returns. GDX operates as an equity fund, holding shares in major mining corporations—its largest positions include Agnico Eagle Mines Ltd. (AEM), Newmont Corp. (NEM), and Barrick Mining Corp. (B). Outside the top three holdings, GDX diversifies across numerous companies, with most individual positions representing less than 5% of the fund.

PPLT takes an entirely different approach, holding physical platinum bars and coins rather than equity securities. This direct commodity exposure means PPLT’s value depends solely on platinum’s spot price movement, with no underlying business performance or management execution affecting returns. Founded 16 years ago, PPLT has maintained a 16-year track record, making it one of the more established physically-backed precious metal ETFs.

The price volatility reflects each approach’s nature: over the past year, PPLT ranged from $82.79 to $225.71, capturing the full sweep of platinum’s market swings. Gold mining equities, by contrast, add another layer of volatility through company-specific factors beyond pure commodity prices.

Costs, Dividends, and Risk: Where Each Fund Shines

Fee structures differ modestly but meaningfully. GDX charges an expense ratio of 0.51% annually, while PPLT’s 0.60% ratio reflects the costs of storing and managing physical platinum. Given PPLT’s higher one-year yield, some investors view the additional nine basis points as justified compensation.

The dividend story heavily favors GDX. With an annual dividend yield of 0.59%, GDX provides cash distributions that PPLT cannot match—PPLT offers zero dividends to shareholders. For income-focused investors or those reinvesting returns, this structural difference becomes significant over multi-year periods.

Asset size and liquidity also diverge dramatically. GDX commands $30.36 billion in assets under management, making it a highly liquid option for traders and long-term investors alike. PPLT manages $3.52 billion, still substantial but approximately one-tenth GDX’s size. This difference affects trading spreads, ease of entry and exit, and fund stability.

Making the Right Choice: GDX or PPLT for Your Investment Strategy

Selecting between these funds requires matching their characteristics to your investment objectives. GDX appeals to investors seeking exposure to the precious metals supply chain through equity participation, preferring the dividend income stream and greater liquidity. The 0.64 beta also means GDX offers slight portfolio diversification while retaining equity market correlation.

PPLT suits investors who want pure commodity exposure without equity market ties, valuing its defensive characteristics (0.34 beta) and accepting the lack of dividend income. The physical platinum backing provides straightforward commodity participation for those skeptical of mining company management or operational risks.

The broader investment case for precious metals rests on time-tested economic principles. Gold and platinum historically rise when the U.S. dollar weakens, particularly during periods of economic uncertainty and geopolitical tension. With platinum estimated at least 10 times rarer than gold despite lesser retail demand, long-term supply constraints potentially support value appreciation.

However, temper expectations about annual performance. Both funds delivered one of the best years in their histories during 2025. Unless geopolitical tensions intensify or global financial instability worsens significantly, expecting 185-190% annual returns in 2026 would be unrealistic. Precious metals investing works best as a portfolio hedge and long-term store of value rather than a get-rich-quick vehicle.

The funds’ combination of demonstrated resilience and improved geopolitical positioning will likely continue to rise in investor consciousness, but sustainable gains depend more on macro conditions than fund-specific factors.