London-based ETF Securities Ltd. continues to expand its line of commodity ETFs at a torrid pace, announcing this week that five ETFs holding precious metals will begin trading on the Tokyo Stock Exchange later this month. The new funds are:
ETF Securities is perhaps best known as the firm behind the launch of the world’s first gold ETC in 2003 and first oil ETC in 2005, but the company has been expanding quickly beyond the UK in recent months. In July, ETFS made launched its first U.S.-listed product, the ETFS Silver Trust (SIVR). Driven by a best-in-class expense ratio (0.30% compared to 0.50% for iShares’ SLV), enhanced transparency, and the firm’s reputation for expertise in physically-backed exchange-traded products, SIVR was an immediate hit with investors, surpassing the $80 million in assets mark within a few weeks of launch and now approaching a market capitalization of $100 million. And perhaps more importantly for traders, SIVR’s daily volume has consistently topped 100,000 shares over the last week, eliminating any worries over liquidity that frequently plague new ETF issues.
By comparison, the iShares Emerging Market Infrastructure Fund (EMIF), which launched more than a month before SIVR, has a typical daily volume below 10,000 shares. I realize these are apples and oranges (a niche equity fund compared to a fund holding a widely-traded commodity), but EMIF’s volumes are more typical of recently-launched ETFs in their first months of trading, and puts the incredible start of SIVR into perspective a bit.
Disclosure: No positions at time of writing.