Alrosa is primarily a diamond company involved in the exploration and production of diamonds and gemstones throughout Asia and Africa. By volume, Alrosa is the world’s largest producer of rough diamonds, according to PureFunds.
With the addition of Alrosa, GEMS no offers exposure to six countries: The U.K., Hong Kong, Canada, the U.S., Japan, Singapore and Russia. Hong Kong, Canada and Singapore are all developed markets with AAA credit ratings.
Despite the weakness in the commodities space, diamonds are shining, supported by the rising middle class in the emerging markets. “. In addition, new demand is coming from investors of hard assets, as confidence in government issued currencies deteriorates. Given these favorable demand dynamics, there have only been a few new major gemstone mines in development over the last decade, as new supply is becoming more and more difficult to find,” according to the GEMS web page.
PureFunds ISE Diamond/Gemstone ETF
