ETF Securities‘ success with its lineup of exchange traded funds (ETFs) in the United States could be called a case of perfect timing.
Since launching its first ETF, ETFS Physical Silver (NYSEArca: SIVR), 18 months ago, the provider has hit $3.5 billion in assets. In a not only increasingly competitive business, but one in which it’s a challenge for new providers to break ground, it’s quite a feat.
It (almost) goes without saying that the provider, already an established presence in Europe before making the leap across the Pond, is pleased with its first months in the U.S. ETF market.
“I think things are going well for us in terms of penetration into the U.S. market and also in terms of the asset gathering and recognition of the brand,” says Fred Jheon, ETF Securities’ head of product development.
Much of that success could have to do with its diversified suite of physically-backed ETFs tracking the hottest precious metals in the markets today. And the provider knows it.
“A lot of that has to do with coming to market with the right products. We pay very close attention to client demand and try to launch products based on what investment demand is,” says Jheon.
One such area is in the realm of geographic diversity across gold holdings, which led the provider to launch ETFS Physical Asian Gold Shares (NYSEArca: AGOL) last week.
Despite a robust lineup that includes ETFS Physical Platinum (NYSEArca: PPLT), ETFS Physical Palladium (NYSEArca: PALL), ETFS Physical Precious Metals Basket (NYSEArca: GLTR) and ETFS Physical White Metals Basket (NYSEArca: WITE), the provider is far from seeing its work here as done.
“We still have a fair amount of work to do in building out the commodity product set,” Jheon says, noting that though the focus has been on precious metals, the provider has an interest in other commodities. “Precious metals is just one component.”