Gold Miners vs. Platinum Bullion: Which Precious Metal ETF Fits Your Portfolio?

Investors hunting for exposure to precious metals face a fundamental choice: should they pursue indirect exposure through mining companies or direct exposure to the raw commodity? The VanEck Gold Miners ETF (GDX) and abrdn Physical Platinum Shares ETF (PPLT) answer this question in vastly different ways. Both delivered extraordinary returns over the past year—GDX gained 185.16% while PPLT surged 190.64%—yet they operate under completely different investment philosophies. Understanding these differences is crucial for anyone seeking to add precious metals to their investment mix.

Quick Performance Snapshot: Both Shine, but Differently

On the surface, both ETFs look like winners. As of January 24, 2026, PPLT slightly edged out GDX in one-year performance, capturing 190.64% versus 185.16%. However, raw returns tell only part of the story. PPLT achieved this with a beta of just 0.34—meaning it moves much less dramatically than the broader market—while GDX’s beta of 0.64 suggests somewhat more volatility. For risk-averse investors, PPLT’s smoother ride comes with a cost: its expense ratio stands at 0.60% annually compared to GDX’s 0.51%. The size difference is also striking: GDX manages $30.36 billion in assets under management, making it vastly more liquid than PPLT’s $3.52 billion.

Inside the Funds: Gold Mining Stocks vs. Physical Platinum

The structural difference between these products shapes their risk-return profiles fundamentally. GDX holds an index of global gold mining corporations rather than gold itself. Its largest positions include Agnico Eagle Mines Ltd., Newmont Corp., and Barrick Mining Corp.—each representing substantial weight in the fund, though all other holdings account for less than 5% individually. This means investors own shares in businesses that extract and sell precious metals, not the metals themselves.

PPLT takes the opposite approach: it holds physical platinum bullion, period. No stocks, no companies, no mining operations. This direct exposure means PPLT’s price movements track platinum’s spot price almost perfectly. Over the past year, platinum’s volatility was on full display, with prices ranging from a low of $82.79 to a high of $225.71—a swing reflecting the commodity’s inherent price swings independent of corporate performance or management decisions.

The Cost of Entry and Annual Returns

Expense ratios may seem trivial until you compound them over decades. GDX’s 0.51% annually is competitive for an equity ETF, while PPLT’s 0.60% is reasonable for a commodity trust holding physical assets. The meaningful difference emerges in dividend policy. GDX pays an annual dividend yield of 0.59%, rewarding shareholders with ongoing income from mining company dividends. PPLT currently offers no dividend whatsoever. For income-focused investors, this distinction matters considerably.

Risk Profile and Five-Year Growth Comparison

Examining the broader historical picture reveals important nuances. Over the past five years, PPLT experienced a maximum drawdown of -35.73% from peak to trough, while GDX’s larger drawdown reached -46.52%. The larger drawdown for GDX reflects its exposure to equity market volatility—mining company stocks respond not just to precious metal prices but to general economic conditions, interest rates, and corporate operations. A $1,000 investment made five years ago would have grown to $2,587 in GDX versus $2,133 in PPLT, indicating that despite higher volatility, GDX’s equity exposure generated superior returns over that period.

Why Precious Metals Matter in 2026

Both precious metals function as portfolios hedges against U.S. dollar weakness and global economic uncertainty. Historically, gold and platinum appreciate when the dollar weakens and geopolitical tensions rise. Their long-term value proposition rests on scarcity: platinum is estimated to be at least 10 times rarer than gold, despite attracting less retail attention. As industrial and investment demand continues, supply constraints support higher valuations over extended timeframes.

However, tempering expectations is essential. The precious metals complex delivered one of its most exceptional annual performances in 2025. Replicating that magnitude of returns in 2026 seems unlikely unless geopolitical conditions dramatically deteriorate or financial instability accelerates. Precious metals should occupy a portfolio allocation role, not be viewed as perpetual wealth-creation engines.

Making Your Choice: A Decision Framework

Choose GDX if you: Want greater liquidity and lower costs, prefer business exposure alongside precious metals, seek annual dividend income, have higher risk tolerance to weather equity market volatility, and believe mining company valuations offer upside beyond commodity prices alone.

Choose PPLT if you: Desire pure precious metal exposure without company-specific risks, prefer lower volatility and smoother price movements, accept zero dividend income, want simpler tracking of platinum’s physical price, and seek a commodity hedge uncomplicated by equity market factors.

The reality is that both ETFs offer legitimate entry points into the precious metals space—just for different investor profiles. Your choice depends ultimately on whether you want equity exposure to mining businesses or direct commodity exposure, and how much volatility you’re willing to tolerate in pursuit of precious metals returns.