ETF Securities (ETFS), the leading global provider of commodity ETFs, celebrates its two-year anniversary as a U.S. exchange traded product (ETP) provider in July 2011. Its first product listed on the NYSE Arca, ETFS Physical Silver Shares (SIVR), has seen assets grow to $725M as of July 19, 2011, and offers the lowest management fee of any physically-backed silver ETF in the market.
Recently, many of ETFS’ products have received recognition from members of the ETF community and media as investor demand for precious metals ETPs continued to grow. Notable awards include:
In just under two years, assets in SGOL have grown to just over $1.5B
as of July 19, 2011. TheStreet.com3 recently
- ETF Securities’ Physical Swiss Gold Shares (SGOL) was “Best 2011 Precious Metals ETF”
In BlackRock’s4 2011 First Half ETF Landscape Report:
- ETFS Physical Swiss Gold Shares (SGOL) and ETFS Physical Palladium Shares (PALL) were among the “Top 20 ETPs in the United States” in terms of assets under management.
ETF Securities received seven awards at the 2011 Annual Global ETF
Awards® in April for both its U.S. and global5 products.
These awards were presented by exchangetradedfunds.com6
- Most Innovative ETF – Americas (ETFS Physical Palladium Shares)
- Most Innovative ETF Hybrid Product – Europe
- ETP with Most Asset Raised By Percentage – Asia-Pacific (ETFS Physical Silver)
- ETP with Most Asset Raised By Percentage – European & Euro-Zone (ETFS Short EUR Long USD)
- ETP with Most Asset Raised in Absolute Growth (ETFS Physical Gold)
- The ETF that Raised the Most Assets in 2010 by Percentage– European & Euro-Zone (ETFS Short EUR Long USD)
- Second Place – Most Recognized ETF Brand Europe.
Commenting on the upcoming anniversary for ETF Securities in the U.S., William Rhind7, Managing Director at ETF Securities (US) LLC, commented:
“Our mission from day one was for ETF Securities to become the leading provider of commodity ETPs in the United States. We have experienced an overwhelming amount of support from our clients and investors and remain committed to further establishing our footprint in the U.S. by providing new and innovative products that meet the growing needs of investors.”
For more information, please contact the U.S. marketing agent, ETF Securities (US) LLC at 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 Precious Metals Basket ETPs from the same provider. The 7 precious metal ETPs have the following key features:
- Track spot price of underlying metal less associated management fees. Ordinary brokerage commissions do apply.
- Physically backed by underlying bullion – minimal counterparty risk
- Bullion holdings audited by specialist audit firm biannually – audit reports published on the website at www.etfsecurities.com
Options8 are trading on ETFS Physical Swiss Gold Shares (SGOL) and ETFS Physical Silver Shares (SIVR).
The ETFS Gold Trust, ETFS Asian Gold Trust, ETFS Silver Trust, ETFS Palladium Trust, ETFS Platinum Trust, ETFS Precious Metals Basket Trust, and ETFS White Metals Basket Trust are not investment companies registered under the Investment Company Act of 1940 or commodity pools 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.
Description of Exchange Traded Products
Exchange Traded Products (ETPs) – the umbrella term used to describe Exchange Traded Funds (ETFs), Exchange Traded Commodities (ETCs), Exchange Traded Notes (ETNs), and US Grantor and other statutory trusts. They are collateralized or uncollateralized open-ended securities listed on a stock exchange tracking an underlying asset.
Exchange Traded Funds (ETFs) – refer to exchange traded products that are structured and regulated as mutual funds or collective investment schemes. ETFs are registered under The Investment Company Act of 1940. Currently, ETFs rely on physical delivery of the underlying assets through the creation and redemption process.
Exchange Traded Commodities (ETCs) – trade and settle like ETFs but are structured as debt instruments. They track both broad and single commodity indices. ETCs either physically and hold the underlying commodity (e.g. physical gold) or get their exposure through fully collateralized swaps.
Exchange Traded Notes (ETNs) – are similar to ETCs except they are not collateralized, which means that an investor in an ETN will be fully exposed to issuer credit risk.
U.S. Grantor and Statutory Trusts – A grantor trust may hold a defined set of assets plus a small amount of cash. They are usually used to hold precious or industrial metals in the United States. Statutory trusts may hold a wider range of commodities and my hold derivative assets (i.e., swaps & futures). Grantor and statutory trusts are often referred to as ETFs but differ in that they are registered under the Security Act of 1933 and not the Investment Company Act of 1940.
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. Investments in the trusts do not constitute a direct investment in the underlying metals.
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. Since there is no limit on the amount of platinum and palladium that the Trust may acquire, the Trust, as it grows, may have an impact on the supply and demand of platinum and palladium. Please refer to the prospectus for complete information regarding all risks associated with the Trusts.
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 Gold Trust, ETFS Asian Gold Trust, ETFS Silver Trust, ETFS Platinum Trust, ETFS Palladium Trust, ETFS Precious Metals Basket Trust, and ETFS White Metals Basket 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 Asian Gold Trust, ETFS Silver Trust, ETFS Platinum Trust, ETFS Palladium Trust, ETFS Precious Metals Basket Trust, and ETFS White Metals Basket Trust by ETF Securities (US) 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.
1 For further information, please visit the Strategic Insight website at http://www.sionline.com/media/releases/110503-pressrelease.pdf
2 For further information, please visit the National Stock Exchange website at http://www.nsx.com/content/etf-assets-list
3 For further information, please visit the TheStreet.com website at http://www.thestreet.com/stock-market-news/11078475/etf-awards.html
4 For further information, please visit the BlackRock website at http://www.blackrockinternational.com/content/groups/internationalsite/documents/literature/etfl_industryreview_q111.pdf
5 Not all products are available in the U.S.
6 For further information, please visit the exchangetradedfunds.com website at http://www.blackrockinternational.com/content/groups/internationalsite/documents/literature/etfl_industryreview_q111.pdf
7 William Rhind is a registered representative of ALPS Distributors, Inc.
8 Options are not suitable for all investors. Please contact your financial advisor before investing.
Stephanie DiIorio, 212-754-5181