abrdn Physical Palladium Shares ETF

What they do

The Trust's assets consist solely of palladium bullion; it holds no derivatives, futures or other commodity interests and has no directors, officers or employees. It issues and redeems Shares only in Baskets of 12,500 Shares (reduced from 25,000 effective June 18, 2024) and only with Authorized Participants. The Sponsor is abrdn ETFs Sponsor LLC, the Trustee is The Bank of New York Mellon, and the custodian is ICBC Standard Bank Plc. The Trust is not registered as an investment company under the Investment Company Act of 1940 and has no fixed termination date.

Revenue drivers

• Palladium bullion exposure — The Trust's sole asset is physical palladium; changes in the LBMA Palladium Price PM (or AM if PM is unavailable) drive the Trust's NAV and reported results.
• Sponsor's Fee — The Sponsor is paid a fee, accrued daily and payable in palladium; palladium is delivered to pay this remuneration, which reduces Trust assets over time.
• Share issuance and redemption in Baskets — Shares are created and redeemed only in 12,500-Share Baskets with Authorized Participants in exchange for palladium, with no active management of the portfolio.
• Trust expense sales of metal — Palladium may be sold on an as-needed basis to pay Trust expenses not assumed by the Sponsor.

Recent performance

Annual net income swung from a loss of $67.6 million in 2024 to income of $321.9 million in 2025, as reported in XBRL data. Diluted EPS moved from $-21.10 in 2024 to $65.50 in 2025. The prior years were all negative: $-72.9 million in 2021, $-60.5 million in 2022 and $-111.4 million in 2023. At June 30, 2026, total assets were $598.0 million and total liabilities were $6.9 million, leaving shareholder equity of $591.1 million. Because the Trust holds only palladium, these swings reflect changes in the palladium price rather than operating performance.

Strategy

The stated objective is for Shares to reflect the performance of the price of physical palladium, less the Trust's expenses. The Trust is not managed like a corporation or an active investment vehicle and does not engage in activities to profit from or mitigate losses caused by palladium price changes. It provides exchange-traded, margin-eligible exposure and reports the value of its holdings on its website daily. The Sponsor's website, www.abrdn.com/us/etf, makes the Trust's SEC filings available free of charge.

Risks

• Palladium price risk — The Trust holds only palladium bullion, so its NAV and reported results move directly with the palladium price; the 2021-2024 losses and 2025 gain illustrate this volatility.
• No active management or hedging — The Trust has no officers or employees and does not hold or employ derivative securities, so it cannot mitigate declines in the palladium price.
• Expenses paid by selling metal — Palladium may be sold on an as-needed basis to pay Trust expenses not assumed by the Sponsor and to pay the Sponsor's Fee, reducing the metal held per Share over time.
• Custodial and structural concentration — The Trust's palladium is held by a single custodian, ICBC Standard Bank Plc, and the Trust is not registered as an investment company under the Investment Company Act of 1940.

Outlook

The filings do not provide management earnings guidance; the Trust has no fixed termination date and no stated plans to change its objective. Future results will continue to be driven by the price of palladium used for valuation, the LBMA Palladium Price PM or AM. The Sponsor's Fee and other expenses will continue to be paid through the delivery or sale of palladium.