Absa Capital, the company behind the largest platinum exchange traded fund in the world, is set to launch a palladium ETF listed on the Johannesburg Stock Exchange on March 27.

“We’ll be listing the fund on Thursday,” Absa’s head of exchange-traded products Vladimir Nedeljkovic said said in a Reuters article.

The NewPalladium ETF will be physically backed by South African palladium.

“We’ve secured supply of the metal, and we can start trading immediately,” Nedeljkovic said. “We’ll abide by the South African Reserve Bank ruling that the metal has to be produced in South Africa.”

The South African Reserve Bank classifies the new Absa ETF as a domestic investment, which will help attract institutional investors who have limits on their assets in foreign investments.

South Africa is the world’s second-largest palladium producer behind Russia.

Palladium is primarily used for automobile autocatalysts to diminish toxic pollutants in exhaust gas.

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