"I am currently invested in Palladium via "ETFS Physical Palladium Fund (UK)" with IG Index. An overlay chart of this fund vs. "Palladium NYME 1st Mth" shows a very close correlation over the last 5 years. Does this indicate that in this instance the ETF fund has matched the performance of the underlying commodity? Many thanks."

David Fuller's view Yes, and for a very important reason - the ETFS holds physical palladium, so there is no contango. The commodity trackers that we do not like hold futures, and by doing so, widen contangos to the detriment of investors who have long positions in the tracker.