FactorShares has filed paperwork with the SEC for a “PureFunds ISE Diamond/Gemstone ETF.” The PureFunds ISE Diamond/Gemstone ETF seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the ISE Gemstone Index. They plan to trade this fund on the NYSE under the symbol (NYSEARCA:GEMS).
Total Annual Fund Operating Expenses: 0.69%
Principal Investment Strategies
Factor Advisors, LLC (the “Adviser”) will use a “passive” or indexing approach to try to achieve the Fund’s investment objective. Unlike many investment companies, the Fund does not try to “beat” the Underlying Index and does not seek temporary defensive positions when markets decline or appear overvalued. The Fund will use a replication strategy. A replication strategy is an indexing strategy that involves investing in the securities of the Underlying Index in approximately the same proportions as in the Underlying Index. However, the Fund may utilize a representative sampling strategy with respect to the Underlying Index when a replication strategy might be detrimental to shareholders, such as when there are practical difficulties or substantial costs involved in compiling a portfolio of equity securities to follow the Underlying Index, in instances in which a security in the Underlying Index becomes temporarily illiquid, unavailable or less liquid, or as a result of legal restrictions or limitations (such as tax diversification requirements) that apply to the Fund but not to the Underlying Index.
The Underlying Index tracks the performance of the largest and most liquid companies involved in the gemstone industry, including companies that produce, explore, and sell gemstones. As of July 24, 2012, the Underlying Index had 26 constituents, 23 of which were foreign companies. Three of the six largest stocks were Petra Diamonds Limited, Harry Winston Diamond Corporation and Chow Tai Fook Jewellery Group. As of July 24, 2012, each of the six largest-weighted constituent securities in the Underlying Index represented 7.11% of the Index. The Fund’s investment objective and Underlying Index may be changed without shareholder approval. Shareholders will be given 60 days’ prior notice of any such change.
The Underlying Index is sponsored by an organization (the “Index Provider”) that is independent of the Fund and the Adviser. The Index Provider determines the relative weightings of the securities in the Underlying Index and publishes information regarding the market value of the Underlying Index. The Fund’s Index Provider is International Securities Exchange, LLC (“ISE”).
The Fund will invest at least 80% of its total assets in the securities of the Underlying Index and in American Depositary Receipts and Global Depositary Receipts based on the securities in the Underlying Index.
For the complete filing click: HERE