Three PureFunds global equity exchange-traded funds, including the first ever ETF to hold shares exclusively of companies engaged in the diamond/gemstone industry, are now available on the NYSE Arca exchange.
The funds track ISE indexes, and feature an annual expense ratio of 0.69 per cent.
The funds are:
PureFunds ISE Diamond/Gemstone ETF (GEMS), which seeks to replicate the price and yield performance of the ISE Diamond/Gemstone Index of companies actively engaged in the gemstone industry including exploration, production, or sales of precious stones.
PureFunds ISE Mining Service ETF (MSXX), which seeks to replicate the price and yield performance of the ISE Mining Service Index of the largest and most liquid companies involved in facilitating the operations of the mining industry as a whole, including companies that manufacture, lease, sell and provide equipment, as well as, companies that provide consulting or other services to the industry.
PureFunds ISE Junior Silver ETF (SILJ), which seeks to replicate the price and yield performance of the ISE Junior Silver Miners Index, a benchmark for investors interested in tracking small-cap public companies active in the silver mining exploration and production industry.
“Diamonds and other gemstones have traditionally been a difficult asset to invest in because there is no spot or futures market, so we developed an ETF that exclusively invests in companies that produce, refine, sell, or hold gemstone inventory,” says Paul Zimnisky, chief executive of PureFunds. “We believe new demand for diamonds and other gemstones will continue to come from developing parts of the world where the trend of gifting gemstones is catching on fast. Investors are also driving demand, as gemstones are being bought as a hedge against inflation, the same way precious metals are. We expect the companies in this fund to benefit if the demand for gemstones remains favourable.”
“By partnering with PureFunds, we are able to combine our extensive experience in index development with PureFunds’ innovative investment concepts in precious metals and other hard assets,” says Kris Monaco, head of new product development at ISE. “As we look to deepen our partnerships in the ETF area, we are also pleased that PureFunds has been able to leverage ISE’s product development guidance, marketing support, and financing resources to successfully introduce the PureFunds products to market.”