For an exchange traded fund (ETF) provider that didn’t exist at this time five years ago, the story of ETF Securities is certainly an impressive one.
The London-based provider, which deals in exchange traded commodities (ETCs) started two years ago with $60 million in assets. After the first year, the number of assets had grown to $2.5 billion. Today, they’re at $10.5 billion and are Europe’s largest ETF provider.
When they started out, “We were four guys. Now we’re 30. It’s changed a lot,” says Director Hector McNeil.
In 2006, the provider created the world’s first all-ETC platform, which listed on the London Stock Exchange. Since then, the company has branched out to four other major exchanges in Europe: Italy, Paris, Frankfurt and Amsterdam.
Today, the company has a lineup of commodity funds covering everything from the broad market, livestock and agriculture to energy, precious metals and industrial metals. There are 129 ETCs in the lineup.
Driven by the skyrocketing price of platinum, among ETF Securities’ more popular funds is the ETFS Physical Platinum (PHPT.L). The firm also is behind several firsts, including the world’s first gold and oil ETCs. Precious metals, in fact, is one of the company’s most popular sectors, as 46% of assets are focused on them.
Agriculture is 32.3%, followed by energy at 12.1%.