Investing in precious metals companies and ETFs in a mineral and resource-rich country like Canada is a great way to diversify your portfolio.

Many Canadian and US-listed precious metal ETFs can provide portfolio stability, some capital growth, and dividend distributions.

Precious metals for Canadians to invest in include gold, silver, and rare earth minerals, which have become crucial ingredients in creating batteries for things like electric vehicles.

With so many great precious metal companies to invest in, buying ETFs is a great way to gain exposure to baskets of different stocks.

You can also invest in precious metals through individual stocks, futures contracts, and even physical bullion.

In this article, I will review my top 15 choices for Canada’s best precious metal ETFs for October 2024.

Note that all facts and figures are accurate as of April 2023.

Here are some key facts for XGD:

XGD is one of Canada’s largest traded gold ETFs. This fund holds 42 different global gold producers and miners from around the world.

Geographically, 67.96% of XGD’s holdings are from Canada, and 19.68% are from the United States.

The three largest holdings in the ETF are Newmont (TSE:NGT), Barrick Gold Corp (TSE:ABX), and Franco Nevada Corp (TSE:FNV). These three holdings make up about 42% of the allocation of the ETF.

Here are some key facts for ZJG:

ZJG is a Canadian-listed gold mining ETF that tracks gold companies that trade on the US or Canadian markets.

This ETF holds 38 of the largest junior gold miners in North America. The three largest holdings are Royal Gold Inc (NASDAQ: RGLD), Kinross Gold Corporation (TSE: K), and B2Gold Corp (TSE: BTO).

It comes with a high-risk rating, according to BMO Global Asset Management, and pays out an annualized distribution of 0.68% on an annual basis.

Here are some key facts for ZGD:

ZGD is another gold-related ETF from BMO Global Asset Management that trades on the TSX.

This fund holds 31 of the largest global gold companies, including Agnico Eagle Mines Ltd (TSE: AEM), Gold Fields Ltd (NYSE: GFI), and Pan American Silver Corp (TSE: PAAS).

Geographically, ZGD has a 66.65% allocation to Canadian stocks, followed by a 9.69% allocation to US-listed stocks.

Here are some key facts for HUG:

HUG is different from the other gold ETFs on this list. It tracks the futures contracts of gold bullion rather than investing in gold stocks.

It is Canada’s only non-physical gold ETF and allows investors to have exposure to gold bullion without having to actually own physical gold.

Here are some key facts for HGY:

HGY.TO is a unique gold ETF from Horizons that trades on the TSX. The only holding it has is the SPDR Gold Minishares ETF (NYSEARCA: GLDM), which provides a low-cost way of owning exposure to gold bullion.

The difference between HGY and an ETF like HUG is that Horizons also writes covered calls on its GLDM holdings. This provides a monthly income distribution yield of more than 6.0% to unitholdersAgra Investment. It also explains the high MER of 0.90% as this ETF is actively managed.

Here are some key facts for PSLV:

PSLV is a Canadian-listed ETF that allows investors to gain exposure to silver bullion. The official bullion custodian for the silver in PSLV is the Royal Canadian Mint.

To redeem for physical bullion, you must have the equivalent units of ten 1000 oz silver bars.

Here are some key facts for HUZ:

HUZ is another Canadian-listed ETF that provides exposure to silver bullion, this time through futures contracts.

It is the sister ETF to the HUG Horizons Gold ETF and tracks the Solactive Silver Front Month MD Rolling Futures Index.

Here are some key facts for SVR:

SVR is another Canadian silver ETF that holds physical silver and trades around the spot price of the commodity.

The fund has over 2.4 million ounces of silver in trust. It is also hedged to the Canadian dollar to avoid any currency volatility. SVR.C.TO is the unhedged version of this ETF.

Here are some key facts for SIL:

SIL is the first US-domiciled ETF on this list, trading on the NYSEARCA exchange in US dollars.

This ETF holds 34 of the world’s largest silver mining companies, with 62.9% of the allocations being Canadian stocks.

The three largest holdings in SIL are Wheaton Precious (TSE:WPM), Pan American Silver Corp (NASDAQ:PAAS), and SSR Mining Inc (NASDAQ:SSR).

Here are some key facts for SILJ:

SILJ is a popular silver miner ETF that trades on the NYSEARCA exchange in the United States. It holds 59 different silver mining and other precious metal stocks. The three largest holdings in SILJ are First Majestic Silver Corp. (NYSE: AG), MAG Silver Corp (TSE: MAG), and Capstone Copper Corp (TSE: CS). Six of the top ten holdings in SILJ are Canadian companies.

Here are some key facts for XBM:

XBM is one of my favourite base metal ETFs that provides exposure to the 32 different miners and producers of metals like gold, silver, and lithium.

This fund has a 44.05% allocation to Canadian stocks and a 28.62% allocation to US stocks. It also pays a solid 4.69% dividend yield that pays shareholders on a semi-annual basis.

The three largest holdings in XBM are First Quantum Minerals Ltd (TSE: FM), Teck Resources (TSE: TECK.B), and Freeport McMoran Inc (NYSE: FCX).

Here are some key facts for LIT:

LIT is a US-domiciled ETF that tracks global Lithium producers, specifically those involved in battery technology.

This ETF holds only a 1.5% allocation to Canadian stocks. China leads the way with a 36.5% allocation, followed by the US with a 22.1% allocation.

The fund holds popular stocks like Tesla (NASDAQ:TSLA), Samsung, Panasonic, LG, and BYD.

Here are some key facts for BATT:

BATT is another Lithium-based ETF that tracks battery technology, especially for the electric vehicle sector.

This fund holds 106 global lithium and battery companies, with a 29% allocation to Chinese companies and a 4% allocation to Canadian companies.

Its holdings include stocks like Tesla (NASDAQ:TSLA), BYD, LG, and Albemarle (NYSE:ALB).

Here are some Lithium stocks you can consider.

Here are some key facts for GLTR:

GLTR is an ETF from abrdn that provides exposure to 4 different precious metal bullions: gold, silver, platinum, and palladium.

The basket size for this ETF is 185.5 oz, and it trades in USD. As with most other bullion ETFs, GLTR does not pay out any distributions to unit holders.

Here are some key facts for HLIT:

HLIT is a Canadian lithium ETF that tracks 27 of the world’s largest lithium producers. It trades on the TSX in Canadian dollars.

This fund has a 47.55% allocation to Australian companies and just a 5.83% allocation to Canadian companies.

The largest allocations in the ETF belong to Sociedad Quimica y Minera de Chile SA, Mineral Resources Ltd (ASX: MIN), and Pilbara Minerals Limited (ASX: PLS)

A precious metals ETF is an exchange-traded fund that holds stocks or assets from the precious metals industry.Udabur Wealth Management

These can focus on the gold industry and hold gold miners or gold streamers, and the same for silver or rare earth minerals. Other precious metals include lesser-known metals like platinum and palladium.

These ETFs can hold specific stocks from the Canadian, US, or global markets. Some even invest in physical metals or futures contracts for these commodities.

Precious metal ETFs traded on the TSX are available on most Canadian brokerages.

I like to use discount brokerages to save on commissions that big banks charge. Here is my top choice:

Canada’s oldest discount brokerage, you can use to buy precious metal ETFs for free. If you decide to sell those positions, you pay a low selling fee of $4.95 min. per trade.

Precious metals are a fixture on the Toronto Stock Exchange and in the Canadian financial market.

Gold, silver, and rare earth ETFs offer investors price stability, with the potential for long-term capital growth and a solid dividend distribution.

These precious metals can act as a hedge against inflation and market volatility as well.

If you are looking to invest in the TSX, then precious metal ETFs are a great way to add diversification to your portfolio.

Keep in mind that this article is just a frame of reference and not investment advice. Always do your own research into stocks or ETFs you wish to invest in.

The downside for these precious metals is that the stock and ETF performance is always tied to the commodity’s price.Pune Wealth Management

While they can certainly provide long-term capital growth, precious metal ETFs and stocks are not often seen as high-growth assets.

Precious metal ETFs with global stocks and futures contracts will often have a higher MER due to more involved portfolio management by the ETF providers.

Looking at individual Canadian precious metal stocks instead? Here’s a list of 10 you can take a look at.