PureFunds has filed with the SEC to launch three global equity Exchange Traded Funds (ETFs), including the first ever ETF to hold shares of companies exclusively in the diamond/gemstone industry. The three innovative ETFs, each of which would feature an annual expense ratio of 0.69 percent, were filed to trade on the NYSE Arca exchange and expect to begin trading in the fourth quarter.
The funds filed for are:
- PureFunds™ ISE Diamond/Gemstone ETF (filed to trade under NYSE Arca: GEMS);
- PureFunds™ ISE Mining Service ETF (filed to trade under NYSE Arca: MSXX); and
- PureFunds™ ISE Junior Silver (Small Cap Miners/Explorers) (filed to trade under NYSE Arca: SILJ).
“The PureFunds ISE Diamond/Gemstone ETF aims to track the supply/demand cycles of the rough and polished precious stone industry,” said Paul Zimnisky, co-founder and CEO of PureFunds. “The demand for diamonds and other gemstones has substantially increased over the past years as global investors look for hard assets as a potential safe haven from the degradation of fiat currency. Our mining service and silver explorer fund were also designed to leverage the increasing demand for hard assets like gold and silver.”
Madison, N.J. based PureFunds, the innovator of the ETF concepts, would be the Business Manager for the funds, alongside the International Securities Exchange (ISE), the index provider, and Factor Advisors, LLC, which would be the adviser to the funds and is a member of the GENCAP family of fund offerings. The funds plan to use an index replication strategy in an attempt to achieve objectives. For more information, please read the preliminary prospectus here.
About PureFunds: As an innovator of ETF concepts, PureFunds was designed to provide the market with easy access to niche sectors through pure-play ETFs. PureFunds aims to launch tactical ETFs that the market desires but do not currently exist. PureFunds would serve as the Business Manager to the Funds.
Safe Harbor Statement: A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This communication shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any State in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.
Carefully consider the Fund’s investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Fund’s preliminary prospectus, which may be obtained here. The statutory prospectus, once effective, can be obtained by calling 1-877- 756-PURE, or 1-877-756-7873. Read the prospectus carefully before investing.
Investing involves risk, including the possible loss of principal. Shares of any ETF are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. Narrowly focused investments typically exhibit higher volatility. The mining industry is highly volatile due to significant fluctuation in the prices of commodities, as well as political and regulatory developments. Investments in foreign securities involve political, economic and currency risks, greater volatility and differences in accounting methods. These risks are greater for investments in emerging markets. The Funds are non-diversified, meaning they may concentrate their assets in fewer individual holdings than a diversified fund. Therefore, the Funds are more exposed to individual issuer volatility than a diversified fund. Funds that are less diversified across countries or geographic regions are generally riskier than more geographically diversified funds and risks associated with such countries or geographic regions may negatively affect a Fund. Investments in small- and medium-capitalization companies tend to have limited liquidity and greater price volatility than large-capitalization companies. The PureFunds ISE Diamond/Gemstone ETF is subject to risks associated with demand and supply of gemstones in the form of jewelry/investments as well as industrial uses. Changes in consumer taste, consumer confidence, man-made alternatives, and spending among this segment of the population may have an adverse impact on the sale of gemstones in the market. The PureFunds ISE Mining Service ETF is subject to risks associated with adverse market conditions, increased competition, environmental concerns, fluctuations in commodity prices and supply and demand of hard commodities, decreased metals demand and the success of exploration projects. Legal or regulatory changes, as well as changes in governments’ policies towards metals, could also adversely impact the mining services sector and therefore Fund performance. The PureFunds ISE Junior Silver ETF is subject to risks associated with the worldwide price of silver and the costs of extraction and production. Worldwide silver prices may fluctuate substantially over short periods of time, so the Fund’s share price may be more volatile than other types of economic conditions, tax treatment, government regulation and intervention, and world events in the regions in which the companies operation. Factor Advisors, LLC serves as the investment adviser and Esposito Partners, LLC serves as sub advisor to the fund. The Funds are distributed by Quasar Distributors, LLC which is not affiliated with Factor Advisors, LLC or any of its affiliates.
The SEC does not endorse, indemnify, approve, nor disapprove of any security.