ETF Securities Launches New Physical White Metals Basket
Source: CPI Financial (12/27/10)
"First U.S. physically backed ETP to exclusively hold silver, platinum and palladium."
The ETFS Physical WM Basket shares will be the first U.S. physically backed ETP to exclusively hold silver, platinum and palladium in fixed weights and will complement the existing suite of products provided by ETF Securities.
"It is expected that WITE will appeal to those investors looking for a 'one-trade solution' to invest in all three precious metals and diversify their existing gold holdings," ETF Securities said.
The sponsor's fee for WITE will be 0.60%. 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. The Trust structure allows for shares to be created and redeemed according to market supply and demand. And the silver, platinum and palladium bullion held by the trust is inspected biannually by the independent metal assayer, Inspectorate International
"The objective of the ETFS White Metals Basket Trust (WITE) shares 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 and convenient way to invest in all three precious metals and diversify their existing gold or precious metal holdings. The product has a gross expense ratio of 0.60%/year annum," ETF Securities said.
"The shares represent beneficial interest in the Trust, which holds physical allocated silver, platinum and palladium bullion held in vaults by the JP Morgan Chase Bank. All physical bullion held with JP Morgan Chase Bank conforms to LBMA's and London Platinum and Palladium Market Association's (LPPM) rules for good delivery. Silver will be held in London and Platinum and Palladium will be held in London or Zurich," it added.