abrdn Palladium ETF Trust 2025 Annual Report: Key Highlights for Investors
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.
Important Shareholder Information & Price-Sensitive Factors
- Palladium Price Volatility: The value of Trust shares is directly tied to palladium prices, which have shown significant volatility. Historical price movements from 2015 to 2025 are provided in the report, but past performance is not indicative of future results.
- Creation/Redemption Dynamics: The reduction in basket size to 12,500 shares may improve liquidity and accessibility for institutional and retail investors, potentially impacting trading volumes and share premiums/discounts.
- Fee Rebates: Although the Sponsor currently does not intend to waive or rebate the fee, it reserves the right to do so for institutional holders, which could affect the effective expense ratio for large investors and influence institutional demand for shares.
- Market Value of Shares: A public float of over \$500 million as of June 30, 2025, and 7.3 million shares outstanding, signal a substantial asset base and liquidity, factors that institutional investors may consider.
- Regulatory and Reporting Status: The Trust is an accelerated filer, has met all reporting requirements, and is not a shell company. There were no financial statement error corrections or restatements reported, which supports confidence in the Trust’s disclosures.
- Industry and Market Structure: The Trust provides detailed data on global palladium supply and demand, including the roles of Zurich and London as clearing centers, LPPM refining standards, and the regulatory environment. These factors can affect physical palladium availability, which in turn may impact share value.
- Tax Implications: Any sale of palladium to pay Trust expenses or Sponsor’s Fee is a taxable event to shareholders.
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.
Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any security. Investors should conduct their own due diligence and consult with a qualified financial advisor before making investment decisions. The information herein is based on the abrdn Palladium ETF Trust’s 2025 Annual Report and is believed to be accurate as of the report’s publication date, but no guarantee is made as to its accuracy or completeness. Past performance is not indicative of future results.
View abrdn Palladium ETF Trust Historical chart here
