ETF Securities announced today that ETFS Physical White Metals Basket Shares will list on the NYSE Arca on December 3, 2010 trading under the ticker symbol WITE “White”.
Key highlights of WITE:
- Unique offering: ETFS Physical WM Basket Shares (Ticker: WITE) will be the first US physically-backed ETP to exclusively hold silver, platinum and palladium in fixed weights. WITE complements the existing suite of products provided by ETF Securities, which continues to offer the broadest range of physically-backed precious metal ETPs in the US market.
- White metals basket: It is expected that WITE will appeal to those investors looking for a “one trade solution” to invest in all three precious metals as well as diversify their existing gold holdings
- Industrial metal play: It is expected that WITE may appeal to investors looking for a precious metals play more geared to the economic growth cycle
- Cost effective: The Sponsor’s Fee for WITE will be 0.60%(3). It is expected that the transaction costs for buying and selling the shares will be lower than purchasing, storing and insuring physical silver, platinum and palladium.
- Liquid(6)– The shares will trade on the NYSE Arca. The Trust structure allows for shares to be created and redeemed according to supply and demand in the market.
- Transparent – The silver, platinum and palladium bullion held by the trust is inspected biannually by the independent metal assayer, Inspectorate International. The pricing information, net asset value, and precious metals bar numbers held by the Trust are published daily on the website www.etfsecurities.com.
ETFS White Metals Basket Trust
The objective of the ETFS White Metals Basket Trust (WITE) shares is to reflect the performance of the price of Silver, Platinum and Palladium, less the Trust’s expenses. The Trust is open ended and is designed for investors who want a cost-effective (1) and convenient (2) way to invest in all three precious metals as well as diversify their existing gold or precious metal holdings. The product has a gross expense ratio of 0.60% per annum. (3)
The Shares represent beneficial interest in the Trust, which holds physical allocated silver, platinum and palladium bullion held in vaults by the Custodian (JP Morgan Chase Bank). All physical bullion held with JP Morgan Chase Bank conforms to the London Bullion Market Association’s (LBMA)(4) and London Platinum and Palladium Market Association’s (LPPM)(5) rules for Good Delivery. Silver will be held in London and Platinum and Palladium will be held in London or Zurich.
Commenting on Friday’s listing of the ETFS Physical White Metals Basket on NYSE ARCA, Fred Jheon, Head of Product and Business Development of ETFS Marketing LLC, said:
“WITE provides our investors with a cost-effective, one-ticker solution towards exposure into silver, platinum and palladium and offers a great complement to portfolios with existing gold and precious metals positions. The new White Metals Basket ETF was developed in response to wealth managers looking to diversify beyond just gold holdings.”
ETF Securities is the first US ETF Sponsor to provide investors with access to a full suite of precious metal ETFs. Investors can now trade physically-backed Gold, Silver, Platinum, Palladium & Precious Metals Basket ETFs from the same provider. The six precious metal ETFs have the following key features:
- Track spot price of underlying metal less associated management fees(1)
- Physically backed by underlying bullion – minimal counterparty risk
- Gold, Silver, Platinum & Palladium vaulted in London and Switzerland
- Bullion holdings audited by specialist audit firm biannually – audit reports published on the website www.etfsecurities.com
- Bullion bar list published on website
- Low cost(1)
- Options (2) are trading on ETFS Physical Swiss Gold Shares (SGOL) and ETFS Physical Silver Shares (SIVR).
ETF Securities Ltd (ETFS), one of the world's leading providers of Exchange Traded Products (ETPs), is independently owned and currently has USD $24billion (as of December 1st, 2010) of assets invested in over 180 of its products globally.
The new listing comes from the same management team who created ETFS Physical Swiss Gold Shares (SGOL) and ETFS Physical Silver Shares (SIVR) in 2009, as well as ETFS Physical Platinum Shares (PPLT) and ETFS Physical Palladium Shares (PALL) in January 2010, which have combined assets under management of US$2.89bn as of December 1st, 2010.
For more information please contact the US marketing agent, ETFS Marketing on 212-918-4954 or visit our website: www.etfsecurities.com.
The ETFS White Metals Basket Trust,The ETFS Precious Metals Basket Trust,The ETFS Gold Trust, ETFS Silver Trust, ETFS Palladium Trust and ETFS Platinum Trust are not investment companies registered under the Investment Company Act of 1940 or a commodity pool 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.
(1) The Sponsor expects that, for many investors, costs associated with buying and selling the Shares in the secondary market and the payment of the Trusts ongoing expenses will be lower than the costs associated with buying, selling, storing and insuring Gold, Silver, Palladium and Platinum bullion in a traditional allocated Gold and Silver bullion account.
(2) The Shares will trade on the NYSE Arca and will provide institutional and retail investors with indirect access to the Gold, Silver, Palladium and Platinum bullion market.
(3) Ordinary brokerage fees do apply.
(4) The LBMA Good Delivery list represents the de facto standard for the quality of gold and silver bars. Stringent criteria for assaying standards and specifications for weight, dimensions, fineness/purity that identify and validate marks and appearance of the bars must be met to qualify as being London Good Delivery bar.
(5) The LPPM Good Delivery list represents the de facto standard for the quality of palladium and platinum bars. Stringent criteria for assaying standards and specifications for weight, dimensions, fineness/purity that identify and validate marks and appearance of the bars must be met to qualify as being London Good Delivery bar.
(6)The lack of a market for the shares of the fund may limit the ability of shareholders to sell their shares
Fred Jheon is a registered representative of ALPS Distributors Inc.
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.
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.
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 forThe ETFS White Metals Basket Trust,ETFS Precious Metals Basket Trust,ETFS Gold Trust, ETFS Silver Trust, ETFS Platinum Trust and ETFS Palladium 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 Silver Trust, ETFS Platinum Trust and ETFS Palladium Trust and ETFS Precious Metals Basket Trust by ETFS Marketing 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.
ALPS Distributors, Inc. is unaffiliated with JPMorgan Chase and LBMA.
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.
Michael Gelormino, 212-909-4780