ETF Securities USA LLC (ETFS) announced today that the total assets under management of its five products; ETFS Physical Swiss Gold Shares (NYSE:SGOL), ETFS Physical Silver Shares (NYSE:SIVR), ETFS Physical Platinum Shares (NYSE:PPLT) and ETFS Physical Palladium Shares (NYSE:PALL) and ETFS Physical PM Basket Shares (NYSE:GLTR) now exceed $2.5 Billion as of November 5th, 2010.
- New ETFS Physical PM Basket shares, Ticker: GLTR (“Glitter”) launched on October 22, 2010 on the NYSE Arca. Trading volumes and asset under management have exceeded expectations in the first two weeks of trading.
- GLTR is the first US-based physically backed precious metal basket Exchange Traded Product (ETP) to hold gold, silver, platinum and palladium in fixed weights. The expense ratio for GLTR is 60 bps(3) per annum(1).
- ETF Securities offers one of the broadest suite of physically backed ETPs with five in the US and plans to continue expanding the product offering.
- Options(2) contracts available on SGOL and SIVR.
Commenting on this milestone for ETF Securities in the US, William Rhind, Strategic Director, Business Development, US commented:
“Reaching $2.5 billion is another strategic milestone for ETF Securities in the US market. We are especially pleased with the market response to GLTR, which holds all four precious metals in one fund. ETF Securities is committed to becoming the leading provider of commodity ETFs in the US. We will continue to develop innovative new products to meet the growing demand from investors seeking new commodity solutions.”
For more information please contact the US marketing agent, ETFS Marketing on 212-918-4954 or visit our website: www.etfsecurities.com.
ETF Securities is the first US ETF Sponsor to provide investors with access to a full suite of precious metal ETPs. Investors can now trade physically backed Gold, Silver, Platinum, Palladium and a Precious Metals Basket ETP from the same provider. The five precious metal ETPs have the following key features:
- Track spot price(4) of underlying metal less associated management fees(1)
- Physically backed by underlying bullion – minimal counterparty risk(5)
- Bullion holdings audited by specialist audit firm biannually – audit reports published on the website www.etfsecurities.com
- Options (2) are trading on ETFS Physical Swiss Gold Shares (SGOL) and ETFS Physical Silver Shares (SIVR).
The ETFS Precious Metals Basket Trust, The ETFS Gold Trust, ETFS Silver Trust, ETFS Palladium Trust and ETFS Platinum Trust are not investment companies registered under the Investment Company Act of 1940 or a commodity pool for purposes of the Commodity Exchange Act. Shares of the Trusts are not subject to the same regulatory requirements as mutual funds. These investments are not suitable for all investors. Please read the prospectus carefully before investing.
(1) Ordinary brokerage fees do apply.
(2) Options are not suitable for all investors, please contact your financial adviser before investing.
(3) Bps = Basis points equal to one one-hundredth of a percentage point.
(4) Spot price = The spot price or spot rate of a commodity, a security or a currency is the price that is quoted for immediate (spot) settlement.
(5) Counterparty risk, otherwise known as default risk, is the risk that an organization does not pay out on a credit derivative, credit default swap, credit insurance contract, or other trade or transaction when it is supposed to.
William Rhind is a registered representative of ALPS Distributors Inc.
Risks and Important Considerations
The value of the Shares relates directly to the value of the gold, silver, palladium and platinum held by the Trusts and fluctuations in the price of gold, silver, palladium and platinum could materially adversely affect an investment in the Shares. Several factors may affect the price of gold, silver, palladium and platinum, including: A change in economic conditions, such as a recession, can adversely affect the price of gold, silver, palladium and platinum. Gold, silver, palladium and platinum are used in a wide range of industrial applications, and an economic downturn could have a negative impact on its demand and, consequently, its price and the price of the Shares; Investors’ expectations with respect to the rate of inflation; Currency exchange rates; Interest rates; Investment and trading activities of hedge funds and commodity funds; and global or regional political, economic or financial events and situations. Should there be an increase in the level of hedge activity of bullion producing companies, it could cause a decline in world prices, adversely affecting the price of the Shares. Also, should the speculative community take a negative view towards bullion, it could cause a decline in world gold, silver, palladium and platinum prices, negatively impacting the price of the Shares. There is a risk that part or all of the Trust’s gold, silver, palladium and platinum could be lost, damaged or stolen. Failure by the Custodian or Sub-Custodian to exercise due care in the safekeeping of the precious metal held by the Trusts could result in a loss to the Trusts.
The Trusts are new and have limited operating history. Commodities generally are volatile and are not suitable for all investors. Trusts focusing on a single commodity generally experience greater volatility. Shares in the Trusts are not FDIC insured, may lose value and have no bank guarantee.
This material must be accompanied or preceded by a prospectus. Please read the prospectus carefully before investing. Click here to review the prospectus.
ALPS Distributors, Inc. is the marketing agent for ETFS Precious Metals Basket Trust, ETFS Gold Trust, ETFS Silver Trust, ETFS Platinum Trust and ETFS Palladium Trust. ETF Securities Ltd. or its affiliates is not affiliated with ALPS Distributors, Inc. Certain marketing services may be provided for ETFS Gold Trust, ETFS Silver Trust, ETFS Platinum Trust and ETFS Palladium Trust and ETFS Precious Metals Basket Trust by ETFS Marketing LLC.
Although Shares of the Trust may be bought and sold on the exchange through any brokerage account, they are not individually redeemable directly from the Trust. Investors may acquire Shares and tender them for redemption through the Trust in Basket aggregation only. Please see the prospectus for more details.
This press release contains “forward-looking statements” with respect to results of operations, plans, objectives, future performance and business. Statements preceded by, followed by or that include words such as “may”, “will”, “should”, “expect”, “plan”, “anticipate”, “believe”, “estimate”, “predict”, “potential”, or similar expressions are intended to identify some of the forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are included, along with the statement, for purposes of complying with the safe harbor provisions of that Act. All statements (other than statements of historical fact) included in this press release that address activities, events or developments that will or may occurring the future, including such matters as changes in commodity prices and market conditions (for Gold, Silver, Platinum and Palladium and the Shares), the Trusts operations, the Sponsors plans and references to the Trusts future success and other similar matters are forward looking statements. These statements are only predictions. Actual events or results may differ materially.
Photos/Multimedia Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=6504760&lang=en