A New ETF To Play Precious Metals

Kevin Grewal
updated | Author's Website

As the appeal for precious metals continues to prevail, ETF provider, ETF Securities, announced that its newest product, the ETFS Precious Metals Basket (GLTR), will begin trading on the NYSE Arca tomorrow.

This new ETF will be the first of its kind enabling investors to gain access to physically backed gold, silver, platinum and palladium all in one security. The actual gold, silver, platinum and palladium bullion that the ETF is backed by is expected to be held by the trust, vaulted in London and Switzerland and inspected biannually by the independent metal assayer, Inspectorate International. 

Furthermore, GLTR will carry an expense ratio of 0.60% and seeks to replicate the performance of the price of Gold, Silver, Platinum and Palladium, less the Trust’s expenses. 

ETF Securities has already made its footprint in precious metal ETFs through its ETFS Physical Swiss Gold Shares (SGOL), ETFS Physical Silver Shares (SIVR), ETFS Physical Platinum Shares (PPLT) and ETFS Physical Palladium Shares (PALL), which have combined assets under management of US$2bn as of September 28th, 2010.

As for the future of GLTR, both micro and macroeconomic forces remain favorable for precious metals, giving GLTR all the right tools to attract assets and answer the prayers of investors who are in search of a one-stop-shop way to play a diversified basket of precious metals.

Disclosure: No Positions

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