ETF Securities, a provider of exchange-traded products, has entered the US market with a silver ETP listed on NYSE Arca.
The objective of ETFS Silver Trust’s shares is to reflect the performance of the price of silver bullion, less the trust’s operating expenses. The trust is open ended and is designed for investors who want a cost-effective and convenient way to invest in silver as well as diversify their silver holdings.
ETFS Silver Trust is backed by physical silver bullion held by HSBC in London. The shares represent an interest in physical silver bullion owned by the trust. The physical silver bullion of the trust is subject to minimal counterparty or credit risks, which contrasts with other offerings that achieve bullion exposure through the use of derivatives.
With its first US product, ETF Securities USA is waiving a portion of its sponsor fee, reducing the expense ratio to 0.30 per cent per annum until 24 July 2010, capped at maximum of 0.45 per cent thereafter.
Graham Tuckwell, president and chief executive of ETF Securities USA, says: ‘The launch of ETFS Silver Trust marks an historic landmark for the ETF Securities. We are very proud to be the first to introduce this noted European provider of exchange-traded products into the US ETP market. ETFS has built a very successful business in Europe providing market access to the world’s commodity markets, and we are extremely excited to be able to offer this new product to US investors. We have put together an excellent team, and we intend to build on our strengths of providing quality customer service and research to help our investors maximize their experience when using ETF Securities’ products.’
In 2003, Tuckwell developed the world’s first gold ETP in Australia and London. ETFS launched the world’s first crude oil ETP in 2005 and then developed a comprehensive product range of commodity ETPs which were listed on the London Stock Exchange in 2006. These products are not available to US Investors.
