“This is typical of the ETF industry – someone takes an interesting financially engineered product like GLD and then tries to copy it,” Peterson added. “But not everything fits so neatly into an ETF wrapper.”
Fund providers, like GemShares and IndexIQ, are already planning physically backed diamond ETFs of their own. [Diamond ETFs Would Allow Investment in Precious Gems]
“The natural users are industry players, just like airlines are for oil and miners are with gold,” Andrew Feldman, a financial adviser, said in the article.
For more information on diamonds and ETFs, visit our diamond category.
Max Chen contributed to this article.