ETF Securities, the European ETF giant that has now accumulated more than $2 billion in U.S. ETF assets, announced the latest addition to its product line on Friday. The ETFS Physical Precious Metal Basket Shares (GLTR) will be the first U.S.-based, physically backed precious metal basket ETP. GLTR (pronounced “glitter”) will hold gold, silver, platinum and palladium in fixed weights: 0.03 ounces of gold, 1.1 ounces of silver, 0.004 ounces of platinum, and 0.006 ounces of palladium. At current market prices, that means that the exposure will be tilted most heavily towards gold and silver,with smaller allocations to the other two precious metals [see Guide To Platinum ETFs].
Currently two ETPs, including the PowerShares DB Precious Metals Fund (DBP) and iPath Precious Metals ETN (JJP), offer exposure to a precious metals basket consisting of gold and silver. There are multiple options for both physically-backed and futures-based exposure to gold, silver, and platinum.
GLTR will be ETF Securities’ fifth physically-backed precious metals fund, joining existing products that offer targeted exposure to each of the four metals included in the basket. “GLTR was developed in response to demand from a diverse client base looking for a single ticker solution that provides cost-effective precious metals exposure in a physically-backed fund,” said Fred Jheon, Head of Product and Business Development of ETFS Marketing LLC. “GLTR complements the existing four individual precious metals products ETF Securities offers to US investors – SIVR, SGOL, PPLT and PALL – and allows our clients to either hold each product individually or customize according to their investment outlook.”
The gold and silver underlying the ETF will be held in London, while the platinum and palladium will be held in either London or Zurich. JP Morgan Chase will serve as the custodian to GLTR [see Differences Between The Major Gold ETFs].
Disclosure: No positions at time of writing.