Hard assets are strengthening as the Fed keeps juicing the market. While precious metals are the typical choice, exchange traded fund investors can also consider diamonds.

The PureFunds ISE Diamond/Gemstone ETF (NYSEArca: GEMS) has gained 2.7% over the past month while precious metals and other miner sectors were in the negative. [Gemstone Miner ETF Could Be Diamond in the Rough]

The outperformance in the diamond industry could continue as demand outstrips supply, especially in Asia where the emerging middle class grow to enjoy the finer things, according to Zacks.

In India, diamond demand surged as an alternative asset due to higher import taxes on gold – uncut diamonds do not attract a levy in India.

Research firm Bain & Company estimates global demand to rise 5.9% annually through 2020, whereas production will only increase 2.7% annually. Bain & Company also points out that the diamond industry came out of the global downturn because high-end customers remained relatively immune to the receession.

The GEMS ETF tracks companies engaged in exploration, production or sales of precious stones.

The fund has 24 holdings and the top components include Chow Tai Fook Jewellery 8.9%, Anglo American 8.0% and Petra Diamonds 7.2%. The ETF also leans toward smaller companies, including 28.3% in micro-caps, 32.4% in small-caps and 22.2% in mid-caps.