ETFs have become a popular investment product for many private investors in recent years. The usually lower costs and fees compared to a managed fund in combination with (sometimes) already diversified assets within the so-called "exchange traded funds" have contributed significantly to the rise of this type of fund. But when searching for a corresponding ETF for osmium, investors will quickly realize that it is even more difficult than searching for osmium shares. The reasons for the lack of osmium-only ETFs, as well as indirect osmium-investment opportunities and alternatives, are discussed below.
Note: The numbering of the following (indirect) osmium ETFs serves as a list, but is not to be understood as a valuation of the respective ETF and says nothing about its future price development on the stock exchange. This article is for information purposes only and is not intended as an investment recommendation or advice.
Why are there no osmium-only ETFs on the stock exchange?
One of the reasons why there are no osmium-only ETFs is, that osmium has not been around very long in a form that is of interest to the industry and investors. Osmium was crystallized for the first time less than 10 years ago, making it usable on a large scale. In addition, the production of osmium is relatively monopolized. The platinum metal mines are in the hands of a few owners. Mining and processing is also a complex undertaking that not many companies are capable of.
Inventing in indirect osmium ETFs is possible!
Due to the reasons explained above, there is currently no way for private investors (but also institutional investors) to invest in osmium ETFs. However, as explained in the article on osmium shares, there are at least indirect ways to invest in osmium via an ETF. At this point, however, it should be clearly pointed out that the options listed below are really an extremely indirect way of investing in osmium and that there are much more effective and direct ways (for example via physical osmium from our store).
The idea behind indirect osmium ETFs is as follows: Since there are specialized companies for the mining and processing of either platinum or metals of the platinum group (platinum, palladium, rhodium, iridium, ruthenium as well as osmium), an investment in an ETF, which includes corresponding companies, allows at least a partial investment in osmium. This is because osmium is usually mined together with platinum.
Osmium ETF #1: iShares MSCI Global Metals & Mining Producers ETF (NYSEMKT:PICK)
The MSCI Global Metals & Mining Producers ETF from the well-known ETF issuer "iShares" allows investment in producers and processors of various metal companies and mines. To be fair, it must be said that it is not exclusively precious metals or platinum, but that these are included. Osmium, on the other hand, is usually mined together with platinum. The ETF consists of around 260 shares of globally active mining companies.
Osmium ETF #2: Abrdn Physical Platinum Shares ETF (NYSEMKT:PPLT)
The Abrdn Physical Platinum Shares ETF from asset manager "Abrdn" has an equivalent value of over $1 billion. The main focus of the ETF is to reflect the price of platinum. As the name of the ETF suggests, the platinum bars are physically stored in JPMorgan Chase vaults.
Osmium ETF #3: GraniteShares Platinum Trust (NYSEMKT:PLTM)
Similar to the Abrdn Physical Platinum Shares ETF, the "GraniteShares Platinum Trust" also has a portfolio of physical platinum bars. The ETF claims to be the cheapest "platinum ETF" on the market, but its performance has nevertheless underperformed the price of platinum in the past, partly due to the fees - even if these are comparatively low. However, this is not special to this ETF or trust, but is a very common phenomenon of ETFs that aim to reflect the price of a specific asset, in this case platinum, but do not contain any shares.
Alternatives to osmium ETFs for investors and investors
As we have seen, the stock market does not make it easy for private investors to invest directly in osmium via ETFs. And the indirect ETF routes are more bad than good. But that doesn't have to put osmium fans off osmium. On the contrary! Osmium is particularly popular with investors in its physical form, for example as osmium bars or osmium crystals. At MetaMetals, we offer genuine, physical osmium with a guaranteed purity of over 99% in various shapes and sizes in our store!
Disclaimer: These materials are for general information purposes only and are not investment advice or a recommendation or solicitation to buy, sell or hold any asset or to engage in any specific trading strategy. Some products and markets like cryptocurrencies, NFTs and others may be unregulated in some countries, and you may not be protected by government compensation and/or regulatory protection schemes. The unpredictable nature of the markets can lead to loss of funds.