Rapid market growth means Britons now have thousands of exchange-traded funds (ETFs) to choose from. These span a variety of different asset classes and sub-sectors, allowing investors to effectively tailor their portfolios and capitalise on different growth opportunities.
Gold ETFs have enjoyed especially strong interest over the past year as metal prices have exploded. But here’s another top commodity-based fund I think’s worth considering in June.
Going grey
Compared with gold, platinum’s price gains have been fairly modest in the year to date. Since 1 January, bullion’s leapt 23.1% in value and printed repeated record highs in this time.
But platinum’s gains aren’t too shoddy. Boosted by strong investment flows and supply issues, the light grey metal has risen 8.1% since the turn of 2025. And I think it could deliver more strong gains given recent supply and demand data.
In this landscape, investing in an ETF like WisdomTree Physical Platinum (LSE:PHPT) could be a good idea to consider.
According to the World Platinum Investment Council (WPIC), the platinum market’s on course to record a third consecutive annual deficit in 2025. Global metal supply slumped to lows not seen since the depths of the pandemic during the first quarter. And production issues are tipped to persist, meaning the WPIC has raised its deficit forecast.
A 966,000-ounce shortfall is now predicted, up from 848,000 ounces previously.
ETFs vs stocks
ETFs like WisdomTree Physical Platinum allow investors to simply track the price of an underlying commodity. Unlike when someone purchases a mining stock (like Anglo American and Sylvania Platinum in the UK, for instance), a fund such as this insulates investors from operational problems that can cause company earnings to fall even when metal prices rise.
This can make it more suitable for risk-averse individuals. Though it’s worth remembering that mining companies that perform strongly can deliver greater returns when platinum prices increase due to the leveraging effect. Basically, even a small rise in the metal’s price can lead to a large boost in a miner’s profits as most of their costs are fixed.
A top fund
On top of this, it’s important to stress that WisdomTree Physical Platinum isn’t danger-free. Platinum is used in a wide array of applications — and is employed especially extensively in car manufacturing — so prices could stagnate or even fall if the world economy cools.
Yet given the direction of travel for platinum supply and demand, I think investing in a fund like this is worth serious consideration. I’m expecting continued macroeconomic and geopolitical uncertainty to continue driving prices of the dual-role metal higher.
Investment demand for platinum leapt 28% year on year in Q1, to 461,000 ounces. With the WPIC tipping the platinum market to remain in deficit through to 2028, at least, this WisdomTree fund could be a top product to consider well beyond this year.
