FactorShares, the exchange traded fund provider more commonly known for its suite of long/short strategies, is working on three new mining-related ETFs, two of which may be the first in their categories.
According to a recent Securities and Exchange Commission filing, FactorShares is working on a diamond/gemstone miner, mining services and junior silver miners ETF under the new PureFunds line.
The PureFunds ISE Diamond/Gemstone ETF (NYSEArca: GEMS) will follow the performance of the larges and most liquid companies that produce, explore and sell gemstones. It will be the first ETF to specifically target the precious gem industry. GEMS has a 0.69% expense ratio.
As of July 24, 2012, the underlying index had 26 constituents and 23 were foreign companies. Top holdings include Petra Diamonds Limited, Harry Winston Diamond Corp. and Chow Tai Fook Jewellery Group, each with a 7.1% weighting.
On the commodities side, the ETF industry is also working to engineer the first physically-backed diamond ETF. [Diamond ETFs Would Allow Investment in Precious Gems]
The PureFunds ISE Mining Service ETF (NYSEArca: MSXX) will track the largest and most liquid companies that facilitate the operations of mining services industry, from those that manufacture, lease, sell and provide equipment to miners, along with those that engage in exploration and extraction. MSXX has a 0.69% expense ratio.