abrdn Palladium ETF Trust 2025 Annual Report: Key Highlights for Investors
Key Points from the Report
- Trust Overview: abrdn Palladium ETF Trust (the “Trust”) is a physically-backed palladium ETF. Each share represents fractional undivided interest in physical palladium bullion held by the Trust.
- Investment Objective: The Trust aims for its shares to reflect the performance of physical palladium prices, less Trust expenses. It offers investors cost-effective access to palladium markets, with minimal credit risk and high transparency.
- Outstanding Shares and Public Float: As of February 26, 2026, there were 7,300,000 shares outstanding. The market value of the registrant’s shares based on the June 30, 2025 NYSE Arca closing price was \$501,792,375.
- Trading Information: Shares trade under the symbol “PALL” on NYSE Arca.
- Expense Ratio: The only recurring expense is the Sponsor’s Fee, set at 0.60% of the Trust’s adjusted NAV, payable monthly. The Sponsor may waive or rebate this fee at its discretion for institutional investors, but currently has no intention to do so.
- Basket Size: Shares are created and redeemed in baskets of 12,500 shares, reduced from 25,000 as of June 18, 2024 (and from 50,000 prior to April 1, 2019).
- Minimal Credit Risk: Physical palladium is held in allocated accounts and is not subject to counterparty credit risk. Only a small amount may be temporarily held in unallocated form for operational reasons.
- Transparent Valuation: The Trust’s holdings are valued daily based on London Bullion Market Association (LBMA) palladium prices. Daily NAV is published on the Trust’s website.
- Secondary Market Factors: Shares may trade at a premium or discount to NAV due to non-concurrent trading hours between NYSE Arca and global palladium markets. Liquidity drops after COMEX closes at 1:30 PM NY time, which may widen trading spreads.
- No Internal Control Attestation: The Trust does not require an auditor attestation report on internal control over financial reporting, which is standard for non-accelerated filers.
Detailed Report Insights
Trust Structure & Objective
The abrdn Palladium ETF Trust was established in December 2009, with the exclusive purpose of holding physical palladium. Shares are issued in exchange for physical metal deposited in the Trust and each share represents undivided beneficial ownership of the Trust’s assets. The Trust does not engage in derivatives or leverage, and its assets consist solely of palladium bullion. The Trust has no fixed termination date.
Investment Case for PALL
The shares offer a simple, cost-effective, and transparent way for both institutional and retail investors to gain exposure to palladium prices without the logistical challenges and costs of direct physical ownership, such as transportation, assay, storage, and insurance. Shares are eligible for margin accounts and trade on NYSE Arca, providing ease of access and liquidity. The Trust maintains daily disclosure of its holdings and NAV on its website.
Operational Highlights
- Baskets: Shares are created and redeemed in blocks of 12,500, a change made to increase accessibility and liquidity. This may positively affect trading volumes and reduce premiums/discounts.
- Expense Structure: The Trust’s only recurring expense is the Sponsor’s Fee (0.60% of ANAV). All other administrative and marketing costs are covered by the Sponsor. The Sponsor can waive or rebate fees for large institutional holders, potentially altering net returns for such investors.
- Valuation: Trust assets are valued based on LBMA Palladium Price PM daily, or AM if PM is unavailable. NAV is calculated after 4:00 PM New York time each trading day. The Trustee is not liable for errors unless due to gross negligence or bad faith.
- Redemption/Sale Events: Any sale of palladium (including to pay fees) is taxable for shareholders.
Market Factors & Risks
Palladium Market Dynamics: The report provides an in-depth look at the global palladium market, highlighting that Zurich and London remain the world’s primary clearing centers, with the LPPM overseeing standards and market practices. Regulatory oversight in the UK (FCA, FSM Act) and US (CFTC) are discussed, as are futures exchanges and the impact of global trading hours on liquidity and share pricing.
Price Volatility: Investors should be aware that palladium prices are highly volatile, influenced by industrial demand (notably automotive catalytic converters), supply dynamics, recycling, and macroeconomic factors. The Trust’s share price is expected to react directly to these market swings.
Regulatory and Reporting Notes
- The Trust is classified as an accelerated filer, is not a well-known seasoned issuer, not a shell company, and is compliant with all SEC reporting requirements.
- There have been no corrections or restatements to financial statements, nor any auditor attestation of internal controls, which is standard for this type of filer.
- No documents are incorporated by reference in this report, and there are no unresolved SEC staff comments or recent legal proceedings affecting the Trust.
Palladium Supply, Demand & Price Data
The report includes detailed tables and analysis on world palladium supply and demand from 2015 to 2025, as well as breakdowns by industry application (automotive, investment, pollution control, etc.), and movements in stocks. Historical price charts show significant volatility in palladium prices, with a caution that past performance is not a predictor of future results.
