ETF Trends
ETF Trends

Precious metals are white hot these days, which makes the timing of the launch of ETF Securities‘ newest exchange traded fund (ETF) especially fortuitous.

ETFS Physical WM Basket Shares (NYSEArca: WITE) will be the first physically-backed ETF in the United States to hold silver, platinum and palladium in fixed weights.  [ETF Spotlight on ETFS Physical Palladium.]

WITE will serve as a one-stop investment shop for those investors looking for a pure metals play with good diversification. It is expected that WITE may appeal to investors looking for a precious metals play more geared to the economic growth cycle, giving it an industrial tone. Other attributes include:

  • The fund will charge a 0.60% expense ratio
  • Yi Tian for Bloomberg reports that the fund is weighted with 55 % in silver, 33% in platinum and 12% in palladium, with an expense ratio of 0.60%
  • The metals will be held in vaults in Zurich and London

Will Rhind, head of sales and marketing at ETF Securities, said that the basket would give investors a higher-volatility option than simply holding gold products.

Is the fund meant for you? If you’re looking for an ETF that could be an effective way to play industrial growth, this basket could be an option. The case for silver and platinum group metals is strong right now. Platinum is facing shortages as a result of mine interruptions in South Africa, while silver was one of the top-performing asset classes in November.

Tisha Guerrero contributed to this article.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.