10-Q: abrdn Palladium ETF Trust Reports 4.18% NAV Increase in Q1 2025 Amid Palladium Price Surge

abrdn Palladium ETF Trust saw a 4.18% increase in its Net Asset Value (NAV) during the first quarter of 2025, driven by a rise in palladium prices and a decrease in outstanding shares.

Summary

• abrdn Palladium ETF Trust's NAV increased by 4.18% in Q1 2025, reaching $368.86 million.
• This growth was primarily due to an 8.47% increase in the price of palladium, which rose from $909.00 to $986.00 per ounce.
• The number of outstanding shares decreased from 4,262,500 to 4,100,000 due to creation and redemption activity.
• The NAV per share increased by 8.32%, from $83.06 to $89.97.
• The Trust experienced a net decrease in assets from operations of $30.03 million, influenced by realized losses on palladium transfers and the Sponsor's Fee.
• The Sponsor's Fee for the quarter was $521,017, equivalent to 0.60% of the Trust's adjusted net asset value (ANAV).
• In Q1 2024, the NAV increased by 2.16%, reaching $224.05 million.
• However, the price per ounce of palladium decreased by 10.48% from $1,136.00 to $1,017.00.
• Outstanding shares increased from 2,100,000 to 2,400,000.
• The NAV per share decreased by 10.61% from $104.43 to $93.35.
• The decrease in net assets from operations for the quarter ended March 31, 2024 was $21,124,729.

Sentiment

Score: 7

Explanation: The sentiment is moderately positive due to the increase in NAV and NAV per share, driven by rising palladium prices. However, the presence of realized losses and the Sponsor's Fee temper the overall positive outlook.

Positives

• The Trust's NAV increased by 4.18% in Q1 2025.
• The price of palladium increased by 8.47% during the quarter.
• The NAV per share increased by 8.32% from $83.06 to $89.97.
• The Trust's disclosure controls and procedures were deemed effective as of March 31, 2025.

Negatives

• The Trust experienced a net decrease in assets from operations of $30.03 million for the quarter ended March 31, 2025.
• The decrease in net assets from operations for the quarter ended March 31, 2024 was $21,124,729.
• The NAV per Share fell slightly more than the price per ounce of palladium on a percentage basis due to the Sponsors Fee, which was $315,292 for the quarter, or 0.60% of the Trust's ANAV on an annualized basis.

Risks

• The Trust's performance is heavily reliant on the price of palladium, which is subject to various market factors.
• Fluctuations in global palladium supply and demand, investor expectations, currency exchange rates, and geopolitical events can significantly impact the Trust's financial position.
• There is no guarantee that palladium will maintain its long-term value.

Future Outlook

The discussion and analysis in the report contain forward-looking statements regarding the Trust's financial condition, operations, future performance, and business, based on the Sponsor's assumptions and analyses of historical trends, current conditions, and expected future developments.

Management Comments

• The Sponsor believes that, for many investors, the Shares will represent a cost effective investment relative to traditional means of investing in palladium.

Industry Context

This announcement provides insight into the performance of a palladium-backed ETF, reflecting the broader trends in the precious metals market and investor sentiment towards commodities as an investment vehicle. The ETF's performance is directly tied to the price of palladium, making it a useful indicator of market dynamics for this specific metal.

Comparison to Industry Standards

• Comparable ETFs include other physical palladium or platinum ETFs, such as the GraniteShares Platinum Trust (PLTM) or similar funds that track precious metals.
• The expense ratio of 0.60% is a key metric for comparison; investors often evaluate ETFs based on their expense ratios relative to similar funds.
• Performance is typically benchmarked against the spot price of palladium as determined by the LBMA.

Related Party Transactions

• The Sponsor and the Trustee are considered to be related parties to the Trust.
• The Trustee and the Custodian and their affiliates may from time to time act as Authorized Participants and purchase or sell Shares for their own account, as agent for their customers and for accounts over which they exercise investment discretion.
• In addition, the Trustee and the Custodian and their affiliates may from time to time purchase or sell palladium directly, for their own account, as agent for their customers and for accounts over which they exercise investment discretion.

Stakeholder Impact

• Shareholders benefit from the increased NAV and NAV per share.
• Authorized Participants engage in creation and redemption activities, impacting the supply of shares.
• The Sponsor receives fees for its services, influencing its financial performance.

Key Dates

Keywords

palladium, ETF, abrdn, NAV, shares, trust, investment, sponsor, redemption, creation