FactorShares Files For Miners ETFs

by on September 7, 2012 | ETFs Mentioned:

Equity markets stalled the first few days this week as investors were reluctant to jump back into stocks ahead of the European Central Bank interest rate decision. Much to everyone’s surprise on Thursday, the ECB kept rates steady, although the announcement of the “outright monetary transaction” plan was able to bolster markets higher as investors embraced the proposed plan to ensure financial stability. Amid another low-volume week on Wall Street, RBS rolled out the US Large Cap Alternator ETN (ALTL) while FactorShares filed plans for a trio of mining ETFs [see also Why Bill Gross Thinks The Fed Is Ruining The Economy].

New York-based FactorShares is planning to round out its current suite of spread ETFs with equity-based mining funds [see SEC Filing]:

  • PureFunds ISE Diamond/Gemstone ETF (GEMS): This ETF will look to provide exposure to the largest liquid companies involved in the gemstone industry, including companies that produce, explore and sell gemstones. The filing stated that as on July 24, 2012, the underlying index was comprised of 26 securities, the overwhelming majority of which were foreign; top holdings include Petra Diamonds, Harry Winston Diamond Corporation and Chow Tai Fook Jewellery Group [see also Futures Free Commodity ETFdb Portfolio].
  • PureFunds ISE Mining Service (MSXX): This ETF will look to provide exposure to companies that facilitate the operations of the mining industry as a whole, from those that manufacture, lease, sell and provide equipment to firms involved in consulting, as well as exploration and extraction. As of July 24, 2012, the underlying index was comprised of 31 securities, the overwhelming majority of which were foreign; top holdings include Mineral Resources LTD., China Coal Energy Company and Joy Global [see also Definitive Guide To Broad-Based Mining ETFs].
  • PureFunds ISE Junior Silver ETF (SILJ): This ETF will look to provide exposure to small-cap companies involved in the silver mining industry, including companies that mine, explore or refine silver. As of July 24, 2012, the underlying index was comprised of 28 securities, and similar to GEMS and MSXX, most are foreign; top holdings include, Endeavour Silver Corp., Fortuna Silver Mines and McEwen Mining.
The filing also mentioned that each of the mining funds would have an annual expense ratio of 0.69%.

Follow me on Twitter @SBojinov

[For more ETF analysis, make sure to sign up for our free ETF newsletter or try a free seven day trial to ETFdb Pro]

Disclosure: No positions at time of writing.