5-for-1 split and 23.7% NAV drop at abrdn Palladium (NYSE: PALL)
abrdn Palladium ETF Trust reported Q1 2026 results with a sharp drop in net asset value driven by lower palladium prices and net redemptions. NAV fell 23.74% from $1,035,462,345 at December 31, 2025 to $789,607,931 at March 31, 2026, while NAV per share declined 7.73% from $142.33 to $131.33.
The palladium price tracked by the Trust fell 7.59%, from $1,567.00 to $1,448.00, and ounces held decreased from 638,401.4 to 545,618.0. The Trust realized gains of about $53.2M on palladium distributed for redemptions but recorded an unrealized loss of $128.8M. The annualized expense ratio remained 0.60%, entirely from the Sponsor’s Fee.
The Trust ended the quarter with 6,012,500 Shares outstanding versus 7,275,000 at year-end, after 50 Baskets were created and 151 Baskets redeemed. The Sponsor also approved a 5-for-1 forward share split effective prior to the market open on May 18, 2026, which will quintuple share count and reduce per-share price proportionately without changing overall value.
Positive
- None.
Negative
- None.
Insights
Q1 shows palladium-driven NAV decline, stable fee structure, and upcoming 5-for-1 split.
The Trust’s performance closely followed palladium’s move. NAV dropped 23.74% to $789.6M as ounces held fell from 638,401.4 to 545,618.0 and the palladium price declined 7.59% to $1,448.00 per ounce. These shifts reflect commodity pricing and notable net redemptions rather than operational changes.
Economics per share remained in line with the prospectus. The annualized expense ratio stayed at 0.60%, fully represented by the Sponsor’s Fee of $1.64M in the quarter, with no additional expenses. Total return at NAV was (7.73)%, very close to the underlying metal’s move once fees are included.
The announced 5-for-1 share split, effective before the market open on May 18, 2026, simply adjusts price per share and share count; it does not change aggregate NAV or exposure. Investors comparing periods should note that all per‑share metrics before the split reflect the pre‑split share structure.
Key Figures
Key Terms
Sponsor’s Fee financial
LBMA Palladium Price PM financial
grantor trust financial
Basket financial
fair value hierarchy financial
UNITED
STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For
the Quarterly Period Ended |
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from_______________to_______________ |
Commission
File Number:
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) |
| c/o abrdn ETFs Sponsor LLC | ||
(Address of principal executive offices) |
(Zip Code) |
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Indicate
by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such
reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate
by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant
to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that
the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| Large
|
☐ | Accelerated Filer | ☒ | |
| Non-Accelerated Filer | ☐ | Smaller Reporting Company | ||
| Emerging Growth Company |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate
by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐
Yes ☒
As
of May X, 2026, abrdn Palladium ETF Trust had
Abrdn Palladium ETF Trust
FORM 10-Q
FOR THE QUARTER ENDED MARCH 31, 2026
INDEX
| PART I. FINANCIAL INFORMATION | ||
| Item 1. | Financial Statements | 1 |
| Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 13 |
| Item 3. | Quantitative and Qualitative Disclosures About Market Risk | 15 |
| Item 4. | Controls and Procedures | 15 |
| PART II. OTHER INFORMATION | ||
| Item 1. | Legal Proceedings | 17 |
| Item 1A. | Risk Factors | 17 |
| Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 17 |
| Item 3. | Defaults Upon Senior Securities | 17 |
| Item 4. | Mine Safety Disclosures | 17 |
| Item 5. | Other Information | 17 |
| Item 6. | Exhibits | 17 |
| SIGNATURES | 18 | |
abrdn Palladium ETF Trust
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Statements of Assets and Liabilities
At March 31, 2026 (Unaudited) and December 31, 2025
| March
31, 2026 | December
31, 2025 | |||||||
| (Amounts in 000’s of US$, except for Share and per Share data) | ||||||||
| ASSETS | ||||||||
| Investment in palladium (cost: March 31, 2026:
$ | $ | $ | ||||||
| Palladium receivable | ||||||||
| Total assets | ||||||||
| LIABILITIES | ||||||||
| Fees payable to Sponsor | ||||||||
| Total liabilities | ||||||||
| NET ASSETS(1) | $ | $ | ||||||
| (1) |
See Notes to the Financial Statements
1
abrdn Palladium ETF Trust
Schedules of Investments
At March 31, 2026 (Unaudited) and December 31, 2025
| March 31, 2026 | ||||||||||||||||
| Description | oz | Cost | Fair Value | % of Net Assets | ||||||||||||
| Investment in palladium (in 000’s of US$, except for oz and percentage data) | ||||||||||||||||
| Palladium | $ | $ | % | |||||||||||||
| Total investment in palladium | $ | $ | % | |||||||||||||
| Less liabilities | ( | ) | ( | )% | ||||||||||||
| Net Assets | $ | % | ||||||||||||||
| December 31, 2025 | ||||||||||||||||
| Description | oz | Cost | Fair Value | % of Net Assets | ||||||||||||
| Investment in palladium (in 000’s of US$, except for oz and percentage data) | ||||||||||||||||
| Palladium | $ | $ | % | |||||||||||||
| Total investment in palladium | $ | $ | % | |||||||||||||
| Other assets less liabilities | % | |||||||||||||||
| Net Assets | $ | % | ||||||||||||||
See Notes to the Financial Statements
2
abrdn Palladium ETF Trust
Statements of Operations (Unaudited)
For the three months ended March 31, 2026 and 2025
Three
Months Ended | Three
Months Ended | |||||||
| (Amounts in 000’s of US$, except for Share and per Share data) | ||||||||
| EXPENSES | ||||||||
| Sponsor’s Fee | $ | $ | ||||||
| Total expenses | ||||||||
| Net investment loss | ( | ) | ( | ) | ||||
| REALIZED AND UNREALIZED GAINS / (LOSSES) | ||||||||
| Realized gain / (loss) on palladium transferred to pay expenses | ( | ) | ||||||
| Realized gain / (loss) on palladium distributed for the redemption of Shares | ( | ) | ||||||
| Change in unrealized (loss) / gain on investment in palladium | ( | ) | ||||||
| Total (loss) / gain on investment in palladium | ( | ) | ||||||
| Change in net assets from operations | $ | ( | ) | $ | ||||
| Net increase / (decrease) in net assets per Share | $ | ( | ) | $ | ||||
| Weighted average number of Shares | ||||||||
See Notes to the Financial Statements
3
abrdn Palladium ETF Trust
Statements of Changes in Net Assets (Unaudited)
For the three months ended March 31, 2026 and 2025
| Three
Months Ended March 31, 2026 | ||||||||
| (Amounts in 000’s of US$, except for Share data) | Shares | Amount | ||||||
| Opening balance at January 1, 2026 | $ | |||||||
| Net investment loss | ( | ) | ||||||
| Realized gain on investment in palladium | ||||||||
| Change in unrealized (loss) on investment in palladium | ( | ) | ||||||
| Creations | ||||||||
| Redemptions | ( | ) | ( | ) | ||||
| Closing balance at March 31, 2026 | $ | |||||||
| Three
Months Ended March 31, 2025 | ||||||||
| (Amounts in 000’s of US$, except for Share data) | Shares | Amount | ||||||
| Opening balance at January 1, 2025 | $ | |||||||
| Net investment loss | ( | ) | ||||||
| Realized (loss) on investment in palladium | ( | ) | ||||||
| Change in unrealized gain on investment in palladium | ||||||||
| Creations | ||||||||
| Redemptions | ( | ) | ( | ) | ||||
| Closing balance at March 31, 2025 | $ | |||||||
See Notes to the Financial Statements
4
abrdn Palladium ETF Trust
Financial Highlights (Unaudited)
For the three months ended March 31, 2026 and 2025
| Three
Months Ended March 31, 2026 | Three
Months Ended March 31, 2025 | |||||||
| Per Share Performance (for a Share outstanding throughout the entire period) | ||||||||
| Net asset value per Share at beginning of period | $ | $ | ||||||
| Income from investment operations: | ||||||||
| Net investment loss | ( | ) | ( | ) | ||||
| Total realized and unrealized gains or losses on investment in palladium | ( | ) | ||||||
| Change in net assets from operations | ( | ) | ||||||
| Net asset value per Share at end of period | $ | $ | ||||||
| Weighted average number of Shares | ||||||||
| Expense ratio(1) | % | % | ||||||
| Net investment loss ratio(1) | ( | )% | ( | )% | ||||
| Total return, net asset value(2) | ( | )% | % | |||||
| (1) | |
| (2) |
See Notes to the Financial Statements
5
abrdn Palladium ETF Trust
Notes to the Financial Statements (Unaudited)
| 1. | Organization |
The abrdn
Palladium ETF Trust (the “Trust”) is a common law trust formed on December 30, 2009 under New York
law pursuant to a depositary trust agreement (the “Trust Agreement”) executed by abrdn ETFs Sponsor LLC (the
“Sponsor”) and The Bank of New York Mellon as Trustee (the “Trustee”). The Trust holds palladium and effective
June 18, 2024, issues abrdn Physical Palladium Shares ETF (“Shares”) in minimum blocks of
The investment objective of the Trust is for the Shares to reflect the performance of the price of physical palladium, in proportions held by the Trust, less the Trust’s expenses. The Trust is designed to provide an individual owner of beneficial interests in the Shares (a “Shareholder”) an opportunity to participate in the palladium market through an investment in securities.
The accompanying financial statements were prepared in accordance with the accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions for Form 10-Q. In the opinion of the Trust’s management, all adjustments (which consist of normal recurring adjustments) necessary to present fairly the financial position and results of operations as of and for the three months ended March 31, 2026, and for all periods presented have been made.
These financial statements should be read in conjunction with the Trust’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025. The results of operations for the three months ended March 31, 2026 are not necessarily indicative of the operating results for the full year.
| 2. | Significant Accounting Policies |
The preparation of financial statements in accordance with U.S. GAAP requires those responsible for preparing financial statements to make estimates and assumptions that affect the reported amounts and disclosures. Actual results could differ from those estimates. The following is a summary of significant accounting policies followed by the Trust.
| 2.1. | Basis of Accounting |
The Sponsor has determined that the Trust falls within the scope of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 946, Financial Services—Investment Companies, and has concluded that for reporting purposes, the Trust is classified as an Investment Company. The Trust is not registered as an investment company under the Investment Company Act of 1940 and is not required to register under such act.
| 2.2. | Valuation of Palladium |
The Trust follows the provisions of ASC 820, Fair Value Measurement (“ASC 820”). ASC 820 provides guidance for determining fair value and requires increased disclosure regarding the inputs to valuation techniques used to measure fair value. ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
6
abrdn Palladium ETF Trust
Notes to the Financial Statements (Unaudited)
Effective May 23, 2024, the Trustee, at the direction of the Sponsor, entered into an Allocated Account Agreement and Unallocated Account Agreement with ICBC Standard Bank Plc (“ICBC”), providing for the custody of the Trust’s palladium. At March 31, 2026, all of the Trust’s palladium was held at ICBC.
At the Evaluation Time, the Trustee will value the Trust’s palladium on the basis of the London Bullion Market Association (“LBMA”) Palladium Price PM. If there is no LBMA Palladium Price PM on any day, the Trustee is authorized to use the LBMA Palladium Price AM announced on that day. If neither price is available for that day, the Trustee will value the Trust’s palladium based on the most recently announced LBMA Palladium Price PM or LBMA Palladium Price AM. Realized gains and losses on transfers of palladium, or palladium distributed for the redemption of Shares, are calculated on a trade date basis as the difference between the fair value and average cost of palladium transferred.
The London Metal Exchange (the “LME”) is responsible for the administration of the electronic palladium price fixing system (“LMEbullion”) that replicates electronically the manual London palladium fix processes previously employed by the London Platinum and Palladium Fixing Company Ltd (“LPPFCL”), as well as providing electronic market clearing processes for palladium bullion transactions at the fixed prices established by the LME pricing mechanism. LMEbullion, like the previous London palladium fix processes, establishes and publishes fixed prices for troy ounces of palladium twice each London trading day during fixing sessions beginning at 9:45 a.m. London time (the “LBMA Palladium Price AM”) and 2:00 p.m. London time (the “LBMA Palladium Price PM”). In January 2026, the LBMA announced that it intends to appoint ICE Benchmark Administration (“IBA”) to replace the LME as the third-party administrator of the LBMA Palladium prices in mid-2026.
Once the value of palladium has been determined, the net asset value (the “NAV”) is computed by the Trustee by deducting all accrued fees, expenses and other liabilities of the Trust, including the remuneration due to the Sponsor (the “Sponsor’s Fee”), from the fair value of the palladium and all other assets held by the Trust.
The Trust recognizes changes in fair value of the investment in palladium as changes in unrealized gains or losses on investment in palladium through the Statements of Operations.
The per Share amount of palladium exchanged for a purchase or redemption is calculated daily by the Trustee using the LBMA Palladium Price PM to calculate the palladium amount in respect of any liabilities for which covering palladium sales have not yet been made, and represents the per Share amount of palladium held by the Trust, after giving effect to its liabilities, to cover expenses and liabilities and any losses that may have occurred.
Fair Value Hierarchy
ASC 820 establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. The three levels of inputs are as follows:
– Level 1. Unadjusted quoted prices in active markets for identical assets or liabilities that the Trust has the ability to access.
– Level 2. Observable inputs other than quoted prices included in level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments and similar data.
– Level 3. Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the Trust’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.
7
abrdn Palladium ETF Trust
Notes to the Financial Statements (Unaudited)
To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in level 3.
The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
The Trust’s investment in palladium is classified as a level 1 asset, as its value is calculated using unadjusted quoted prices from primary market sources.
The categorization of the Trust’s assets is as shown below:
| (Amounts in 000’s of US$) | March 31, 2026 | December 31, 2025 | ||||||
| Level 1 | ||||||||
| Investment in palladium | $ | $ | ||||||
There were no transfers between levels during the three months ended March 31, 2026 or the year ended December 31, 2025.
| 2.3. | Palladium Receivable and Payable |
Palladium receivable
or payable represents the quantity of palladium covered by contractually binding orders for the creation or redemption of
Shares respectively, where the palladium has not yet been transferred to or from the Trust’s account. Generally, ownership
of palladium is transferred within one business day of the trade date. At March 31, 2026, the Trust had
| 2.4. | Creations and Redemptions of Shares |
The
Trust expects to create and redeem Shares from time to time, but only in one or more Baskets (a Basket equals a block of
8
abrdn Palladium ETF Trust
Notes to the Financial Statements (Unaudited)
The creation and redemption of Baskets is only made in exchange for the delivery to the Trust or the distribution by the Trust of the amount of palladium represented by the Baskets being created or redeemed, the amount of which is based on the combined NAV of the number of Shares included in the Baskets being created or redeemed determined on the day the order to create or redeem Baskets is properly received.
Authorized Participants may, on any business day, place an order with the Trustee to create or redeem one or more Baskets. Effective May 28, 2024, the standard settlement period for Shares is one business day. Prior to May 28, 2024, the settlement period for Shares was two business days. In the event of a trade date at period end, where a settlement is pending, a respective account receivable and/or payable will be recorded. When palladium is exchanged in settlement of a redemption, it is considered a sale of palladium for financial statement purposes.
The amount of palladium represented by the Baskets created or redeemed can only be settled to the nearest 1/1000th of an ounce. As a result, the value attributed to the creation or redemption of Shares may differ from the value of palladium to be delivered or distributed by the Trust. In order to ensure that the correct amount of palladium is available at all times to back the Shares, the Sponsor accepts an adjustment to its Sponsor’s Fee in the event of any shortfall or excess on each transaction. For each transaction, this amount is not more than 1/1000th of an ounce of palladium.
As the Shares of the Trust are subject to redemption at the option of Authorized Participants, the Trust has classified the outstanding Shares as Net Assets. Changes in the number of Shares outstanding are presented in the Statement of Changes in Net Assets.
| 2.5. | Income Taxes |
The Trust is classified as a “grantor trust” for U.S. federal income tax purposes. As a result, the Trust itself will not be subject to U.S. federal income tax. Instead, the Trust’s income and expenses will “flow through” to the Shareholders, and the Trustee will report the Trust’s proceeds, income, deductions, gains, and losses to the Internal Revenue Service on that basis.
The
Sponsor has evaluated whether or not there are uncertain tax positions that require financial statement recognition and has determined
that
| 2.6. | Investment in Palladium |
Changes in ounces of palladium and their respective values for the three months ended March 31, 2026 and 2025 are set out below:
| Three
Months Ended March 31, 2026 | Three
Months Ended March 31, 2025 | |||||||
| (Amounts in 000’s of US$, except for ounces data) | ||||||||
| Ounces of palladium | ||||||||
| Opening balance | ||||||||
| Creations | ||||||||
| Redemptions | ( | ) | ( | ) | ||||
| Transfers of palladium to pay expenses | ( | ) | ( | ) | ||||
| Closing balance | ||||||||
9
abrdn Palladium ETF Trust
Notes to the Financial Statements (Unaudited)
Investment in palladium
| Three
Months Ended March 31, 2026 | Three
Months Ended March 31, 2025 | |||||||
| Opening balance | $ | $ | ||||||
| Creations | ||||||||
| Redemptions | ( | ) | ( | ) | ||||
| Realized gain / (loss) on palladium distributed for the redemption of Shares | ( | ) | ||||||
| Transfers of palladium to pay expenses | ( | ) | ( | ) | ||||
| Realized gain / (loss) on palladium transferred to pay expenses | ( | ) | ||||||
| Change in unrealized (loss) / gain on investment in palladium | ( | ) | ||||||
| Closing balance | $ | $ | ||||||
| 2.7. | Expenses / Realized Gains / Losses |
The primary expense of the Trust is the Sponsor’s Fee, which is paid by the Trust through in-kind transfers of palladium to the Sponsor.
The
Trust will transfer palladium to the Sponsor to pay the Sponsor’s Fee that accrues daily at an annualized rate equal
to
The
Sponsor has agreed to assume administrative and marketing expenses incurred by the Trust, including the Trustee’s monthly
fee and out of pocket expenses, the Custodian’s fee and the reimbursement of the Custodian’s expenses, exchange listing
fees, United States Securities and Exchange Commission (the “SEC”) registration fees, printing and mailing costs,
audit fees and up to $
For
the three months ended March 31, 2026 and 2025, the Sponsor’s Fee was $
At
March 31, 2026 and at December 31, 2025, the fees payable to the Sponsor were $
With
respect to expenses not otherwise assumed by the Sponsor, the Trustee will, at the direction of the Sponsor or in its own discretion,
sell the Trust’s palladium as necessary to pay these expenses. When selling palladium to pay expenses, the Trustee
will endeavor to sell the smallest amounts of palladium needed to pay these expenses in order to minimize the Trust’s
holdings of assets other than palladium. Other than the Sponsor’s Fee, the Trust had
Unless otherwise directed by the Sponsor, when selling palladium the Trustee will endeavor to sell at the price established by the LBMA Palladium Price. The Trustee will place orders with dealers (which may include the Custodian) through which the Trustee expects to receive the most favorable price and execution of orders. The Custodian may be the purchaser of such palladium only if the sale transaction is made at the next LBMA Palladium Price PM or such other publicly available price that the Sponsor deems fair, in each case as set following the sale order. A gain or loss is recognized based on the difference between the selling price and the average cost of the palladium sold. Neither the Trustee nor the Sponsor is liable for depreciation or loss incurred by reason of any sale.
Realized gains and losses result from the transfer of palladium for Share redemptions and/or to pay expenses and are recognized on a trade date basis as the difference between the fair value and average cost of palladium transferred.
10
abrdn Palladium ETF Trust
Notes to the Financial Statements (Unaudited)
| 2.8. | Segment Reporting |
Operating segments are components of a public entity that engage in business activities from which it may recognize revenues and incur expenses, have discrete financial information available, and have their operating results regularly reviewed by the public entity’s chief operating decision maker (“CODM”) when assessing segment performance and making decisions about segment resources. The Chief Financial Officer of the Sponsor acts as the Trust’s CODM. The CODM monitors the operating results of the Trust as a whole, and the Trust’s asset allocation is managed in accordance with its Prospectus. The Trust operates as a single operating and reporting segment pursuant to its investment objective and principal investment strategy. The Trust’s prospectus describes the Trust’s fees, investment objective, principal investment strategy and principal risks, among other items. The Trust’s portfolio composition, total returns, expense ratios and changes in net assets used by the CODM to assess segment performance and make resource allocations are consistent with the information presented within the Trust’s financial statements. The accompanying financial statements detail the Trust’s segment assets, liabilities, revenues, and expenses. Segment assets are reflected on the Trust’s Statement of Assets and Liabilities as “Total Assets” and significant segment expenses are listed on the Statement of Operations.
| 2.9. | Subsequent Events |
In accordance with the provisions set forth in FASB ASC 855-10, Subsequent Events, the Trust’s management has evaluated the possibility of subsequent events impacting the Trust’s financial statements through the filing date. During this period, no material subsequent events requiring adjustment to or disclosure in the financial statements were identified, other than noted below.
On
April 22, 2026, the Sponsor announced a
3. | Related Parties |
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. The Trustee’s and Custodian’s fees are paid by the Sponsor and are not separate expenses of the Trust.
| 4. | Concentration of Risk |
The Trust’s sole business activity is the investment in palladium, and substantially all the Trust’s assets are holdings of palladium, which creates a concentration of risk associated with fluctuations in the price of palladium. Several factors could affect the price of palladium, including: (i) global palladium supply and demand, which is influenced by factors such as production and cost levels in major palladium-producing countries, recycling, autocatalyst demand, industrial demand, jewelry demand, investment demand, and sales of existing stockpiles of palladium, which have been a key source of supply and are likely to be exhausted soon, placing a higher burden on new mine supply; (ii) investors’ expectations with respect to the rate of inflation; (iii) currency exchange rates; (iv) interest rates; (v) investment and trading activities of hedge funds and commodity funds; and (vi) global or regional political, economic or financial events and situations, including tariffs, sanctions, and other restrictions on trade. In addition, there is no assurance that palladium will maintain its long-term value in terms of purchasing power in the future. In the event that the price of palladium declines, the Sponsor expects the value of an investment in the Shares to decline proportionately. Each of these events could have a material effect on the Trust’s financial position and results of operations.
11
abrdn Palladium ETF Trust
Notes to the Financial Statements (Unaudited)
| 5. | Indemnification |
Under the Trust’s organizational documents, the Trustee (and its directors, employees and agents) and the Sponsor (and its members, managers, directors, officers, employees and affiliates) are indemnified by the Trust against any liability, cost or expense it incurs without gross negligence, bad faith, willful misconduct or willful malfeasance on its part and without reckless disregard on its part of its obligations and duties under the Trust’s organizational documents. The Trust’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust that have not yet occurred.
12
abrdn Palladium ETF Trust
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
This information should be read in conjunction with the financial statements and notes to the financial statements included in Item 1 of Part 1 of this Form 10-Q. The discussion and analysis that follows may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and within the Private Securities Litigation Reform Act of 1995, as amended. These forward-looking statements may relate to the Trust’s financial condition, operations, future performance and business. These statements can be identified by the use of the words “may”, “should”, “expect”, “plan”, “anticipate”, “believe”, “estimate”, “predict”, “potential” or similar words and phrases. These statements are based upon certain assumptions and analyses the Sponsor has made based on its perception of historical trends, current conditions and expected future developments. Neither the Trust nor the Sponsor is under a duty to update any of the forward-looking statements, to conform such statements to actual results or to reflect a change in management’s expectations or predictions.
Introduction
The Trust is a common law trust, formed under the laws of the state of New York on December 30, 2009. The Trust is not managed like a corporation or an active investment vehicle. It does not have any officers, directors, or employees and is administered by the Trustee pursuant to the Trust Agreement. The Trust is not registered as an investment company under the Investment Company Act of 1940 and is not required to register under such act. It does not hold or trade in commodity futures contracts, nor is it a commodity pool, or subject to regulation as a commodity pool operator or a commodity trading adviser in connection with issuing Shares.
The Trust holds palladium and is expected to issue Baskets in exchange for deposits of palladium and to distribute palladium in connection with redemptions of Baskets. Shares issued by the Trust represent units of undivided beneficial interest in and ownership of the Trust. The investment objective of the Trust is for the Shares to reflect the performance of the price of palladium bullion, less the Trust’s expenses. The Sponsor believes that, for many investors, the Shares will represent a cost effective investment relative to traditional means of investing in palladium.
The Trust issues and redeems Shares only in exchange for palladium and only in aggregations of 12,500 Shares effective June 18, 2024 (Prior to June 18, 2024, the number of Shares that constituted a Basket was 25,000 Shares) or integral multiples thereof (each, a “Basket”), and only in transactions with registered broker-dealers (or other securities market participants not required to register as broker-dealers, such as a bank or other financial institution) that (1) are participants in DTC and (2) have previously entered into an agreement with the Trust governing the terms and conditions of such issuance (such dealers, the “Authorized Participants”).
Shares of the Trust trade on the NYSE Arca, Inc. (“NYSE Arca”) under the symbol “PALL”.
Valuation of Palladium and Computation of Net Asset Value
On each day that the NYSE Arca is open for regular trading, as promptly as practicable after 4:00 p.m. New York time on such day (the “Evaluation Time”), the Trustee evaluates the palladium held by the Trust and determines the NAV of the Trust.
At the Evaluation Time, the Trustee values the Trust’s palladium on the basis of that day’s LBMA Palladium Price PM or, if no LBMA Palladium Price PM Fix is made on such day, or has not been announced by the Evaluation Time, the LBMA Palladium Price AM announced on that day will be used. If neither price is available for that day, the Trust will value its palladium based on the most recently announced LBMA Palladium Price PM or LBMA Palladium Price AM, unless the Sponsor determines that such price is inappropriate as a basis for evaluation. In the event the Sponsor determines that the applicable LBMA Palladium Price PM or such other publicly available price as the Sponsor may deem fairly represents the commercial value of the Trust’s palladium is not an appropriate basis for evaluation of the Trust’s palladium, it shall identify an alternative basis for such evaluation to be employed by the Trustee. Neither the Trustee nor the Sponsor shall be liable to any person for the determination that the LBMA Palladium Price PM or such other publicly available price is not appropriate as a basis for evaluation of the Trust’s palladium or for any determination as to the alternative basis for such evaluation provided that such determination is made in good faith.
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Once the value of the palladium has been determined, the Trustee subtracts all estimated accrued but unpaid fees (other than the fees accruing for such day on which the valuation takes place that are computed by reference to the value of the Trust or its assets), expenses and other liabilities of the Trust from the total value of the palladium and all other assets of the Trust (other than any amounts credited to the Trust’s reserve account, if established). The resulting figure is the ANAV of the Trust. The ANAV of the Trust is used to compute the Sponsor’s Fee.
All fees accruing for the day on which the valuation takes place that are computed by reference to the value of the Trust or its assets are calculated using the ANAV calculated for such day. The Trustee subtracts from the ANAV the amount of accrued fees so computed for such day and the resulting figure is the NAV of the Trust. The Trustee also determines the NAV per Share by dividing the NAV of the Trust by the number of the Shares outstanding as of the close of trading on the NYSE Arca (which includes the net number of any Shares created or redeemed on such evaluation day).
Any estimate of the accrued but unpaid fees, expenses and liabilities of the Trust for purposes of computing the NAV of the Trust and ANAV made by the Trustee in good faith shall be conclusive upon all persons interested in the Trust and no revision or correction in any computation made under the Trust Agreement will be required by reason of any difference in amounts estimated from those actually paid.
The NAV of the Trust is obtained by subtracting the Trust’s liabilities on any day from the value of the palladium owned and receivable by the Trust on that day; the NAV per Share is obtained by dividing the NAV of the Trust on a given day by the number of Shares outstanding on that day.
Recent Events
On April 22, 2026, the Sponsor announce a 5-for-1 forward share split (the "Split") of the Shares issued by the Trust.
The Split will apply to shareholders of record as of the close of the markets on May 14, 2026, and will be payable after the close of the markets on May 15, 2026. The Split will be effective prior to the market open on May 18, 2026, when the Shares of the Registrant will trade at their post-Split prices. The ticker symbol and CUSIP number for the Shares will not change.
The Split will decrease the price per Share of the Registrant with a proportionate increase in the number of Shares outstanding. In the 5-for-1 Split, shareholders will receive five post-Split-Shares for every Share held of record as of the close of the markets on May 14, 2026. The post-Split Shares will be priced at one-fifth the NAV of a pre-Split Share.
The Quarter Ended March 31, 2026
The Trust’s NAV decreased from $1,035,462,345 at December 31, 2025 to $789,607,931 at March 31, 2026, a 23.74% decrease for the quarter. The change in the Trust’s NAV resulted from a decrease in the price per ounce of palladium, which fell 7.59% from $1,567.00 at December 31, 2025 to $1,448.00 at March 31, 2026 and a decrease in outstanding Shares, which fell from 7,275,000 Shares at December 31, 2025 to 6,012,500 Shares at March 31, 2026, as a result of 625,000 Shares (50 Baskets) being created and 1,887,500 Shares (151 Baskets) being redeemed for the quarter.
The NAV per Share decreased 7.73% from $142.33 at December 31, 2025 to $131.33 at March 31, 2026. The Trust’s NAV per Share fell slightly more than the price per ounce of palladium on a percentage basis due to the Sponsor’s Fee, which was $1,641,881 for the quarter, or 0.60% of the Trust’s ANAV.
The NAV per Share of $191.20 at January 29, 2026 was the highest during the quarter, compared with a low of $124.45 at March 26, 2026.
The decrease in net assets from operations for the quarter ended March 31, 2026 was $77,200,499, resulting from a change in unrealized loss on investment in palladium of $128,792,060 and the Sponsor’s Fee of $1,641,881, offset by a realized gain of $423,745 on the transfer of palladium to pay expenses and a realized gain of $52,809,697 on palladium distributed for the redemption of Shares. Other than the Sponsor’s Fee, the Trust had no expenses during the quarter ended March 31, 2026.
The Quarter Ended March 31, 2025
The Trust’s NAV increased from $354,057,800 at December 31, 2024 to $368,860,564 at March 31, 2025, a 4.18% increase for the quarter. The change in the Trust’s NAV resulted from an increase in the price per ounce of palladium, which rose 8.47% from $909.00 at December 31, 2024 to $986.00 at March 31, 2025 and a decrease in outstanding Shares, which fell from 4,262,500 Shares at December 31, 2024 to 4,100,000 Shares at March 31, 2025, as a result of 412,500 Shares (33 Baskets) being created and 575,000 Shares (46 Baskets) being redeemed for the quarter.
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The NAV per Share increased 8.32% from $83.06 at December 31, 2024 to $89.97 at March 31, 2025. The Trust’s NAV per Share rose slightly less than the price per ounce of palladium on a percentage basis due to the Sponsor’s Fee, which was $521,017 for the quarter, or 0.60% of the Trust’s ANAV on an annualized basis.
The NAV per Share of $97.78 at February 3, 2025 was the highest during the quarter, compared with a low of $83.80 at February 28, 2025.
The decrease in net assets from operations for the quarter ended March 31, 2025 was $30,027,321, resulting from a realized loss of $177,559 on the transfer of palladium to pay expenses, a realized loss of $14,652,231 on palladium distributed for the redemption of Shares, and the Sponsor’s Fee of $521,017, offset by a change in unrealized gain on investment in palladium of $45,378,128. Other than the Sponsor’s Fee, the Trust had no expenses during the quarter ended March 31, 2025.
Liquidity & Capital Resources
The Trust is not aware of any trends, demands, commitments, events or uncertainties that are reasonably likely to result in material changes to its liquidity needs. In exchange for the Sponsor’s Fee, the Sponsor has agreed to assume most of the expenses incurred by the Trust. As a result, the only ordinary expense of the Trust during the period covered by this report was the Sponsor’s Fee.
The Trustee will, at the direction of the Sponsor or in its own discretion, sell the Trust’s palladium as necessary to pay the Trust’s expenses not otherwise assumed by the Sponsor. The Trustee will not sell palladium to pay the Sponsor’s Fee but will pay the Sponsor’s Fee through in-kind transfers of palladium to the Sponsor. At March 31, 2026, the Trust did not have any cash balances.
Off-Balance Sheet Arrangements
The Trust is not a party to any off-balance sheet arrangements.
Critical Accounting Policies
The financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these financial statements relies on estimates and assumptions that impact the Trust’s financial position and results of operations. These estimates and assumptions affect the Trust’s application of accounting policies. Refer to Note 2 to the Financial Statements for further information on accounting policies.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
The Trust Agreement does not authorize the Trustee to borrow for payment of the Trust’s ordinary expenses. The Trust does not engage in transactions in foreign currencies which could expose the Trust or holders of Shares to any foreign currency related market risk. The Trust invests in no derivative financial instruments and has no foreign operations or long-term debt instruments.
Item 4. Controls and Procedures
The Trust maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in its reports under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to the Chief Executive Officer and Chief Financial Officer of the Sponsor, and to the audit committee, as appropriate, to allow timely decisions regarding required disclosure.
Under the supervision and with the participation of the Chief Executive Officer and the Chief Financial Officer of the Sponsor, the Sponsor conducted an evaluation of the Trust’s disclosure controls and procedures, as defined under Exchange Act Rules 13a-15(e) and 15d-15(e). Based on this evaluation, the Chief Executive Officer and the Chief Financial Officer of the Sponsor concluded that, as of March 31, 2026, the Trust’s disclosure controls and procedures were effective.
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Internal controls over financial reporting have been maintained throughout the Trust’s quarter ended March 31, 2026. There have been no changes that have materially affected, or are reasonably likely to materially affect, the Trust’s or Sponsor’s internal control over financial reporting.
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PART II. OTHER INFORMATION
Item 1. Legal Proceedings
None.
Item 1A. Risk Factors
There have been no material changes to the risk factors previously disclosed in the Trust’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 2(a). None.
Item 2(b). Not applicable.
Item 2(c). For the three months ended March 31, 2026:
50 Baskets were created.
151 Baskets were redeemed.
| Period | Total Baskets Redeemed |
Total Shares Redeemed | Average ounces of palladium per Share | |||
| January 2026 | 4 | 50,000 | 0.091 | |||
| February 2026 | 44 | 550,000 | 0.091 | |||
| March 2026 | 103 | 1,287,500 | 0.091 | |||
| 151 | 1,887,500 | 0.091 |
Item 3. Defaults Upon Senior Securities
None.
Item 4. Mine Safety Disclosures
Not applicable.
Item 5. Other Information
Item 6. Exhibits
| 31.1 | Chief Executive Officer’s Certificate, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
| 31.2 | Chief Financial Officer’s Certificate, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
| 32.1 | Chief Executive Officer’s Certificate, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
| 32.2 | Chief Financial Officer’s Certificate, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
| 101 | The following financial statements from the Trust’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, formatted in Inline XBRL: (i) Statements of Assets and Liabilities, (ii) Statements of Operations, (iii) Statements of Changes in Net Assets, and (iv) Notes to the Financial Statements. |
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Document |
| 101.DEF | Inline XBRL Taxonomy Extension Definitions Document |
| 101.LAB | Inline XBRL Taxonomy Extension Labels Document |
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Document |
| 104 | The cover page from the Trust’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, formatted in Inline XBRL (included as Exhibit 101). |
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abrdn Palladium ETF Trust
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned in the capacities thereunto duly authorized.
| abrdn ETFs Sponsor LLC | ||
| Date: May 8, 2026 | /s/ Steven Dunn* | |
| Steven Dunn ** | ||
| President and Chief Executive Officer | ||
| (Principal Executive Officer) | ||
| Date: May 8, 2026 | /s/ Sharon Ferrari* | |
| Sharon Ferrari** | ||
| Chief Financial Officer and Treasurer | ||
| (Principal Financial Officer and Principal Accounting Officer) | ||
| * | The originally executed copy of this Certification will be maintained at the Sponsor’s offices and will be made available for inspection upon request. | |
| ** | The Registrant is a trust and the persons are signing in their capacities as officers of abrdn ETFs Sponsor LLC, the Sponsor of the Registrant. | |
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