Investors Gain New Commission-Free Access to Physically-Backed Precious Metals

ETF Securities Commodities Products available to investors on E*TRADE's and Interactive Brokers' Commission-Free ETF platform

NEW YORK, Feb. 28, 2017 /PRNewswire/ -- In response to increased demand, ETF Securities, a specialist commodity Exchange Traded Product (ETP) provider, today announces a widening of commission-free access to its range of physically-backed precious metal exchange-traded funds (ETFs).

Partnerships with two leading platform providers have made ETFs offering exposure to gold, silver or a precious metal basket available on E*TRADE's and Interactive Brokers' Commission-Free ETF platform*, which is also listing ETFs offering exposure to platinum and palladium. All of the ETFs have been available commission-free on the Schwab ETF OneSource® platform since 2013.

Name

Ticker

Cost

E*TRADE

Interactive Brokers

Schwab ETF OneSource® 1

ETFS Physical Swiss Gold Shares

SGOL

0.39%

x

x

x

ETFS Physical Precious Metals Basket Shares

GLTR

0.60%

x

x

x

ETFS Physical Silver Shares

SIVR

0.30%

x

x

x

ETFS Physical Platinum Shares

PPLT

0.60%


x

x

ETFS Physical Palladium Shares

PALL

0.60%


x

x

"During severe market corrections, precious metals have tended to perform positively, providing some measure of protection during selloffs," said Steven Dunn, Executive Director and Head of U.S. Distribution for ETF Securities. "By extending the range of ETFs offered commission-free, we hope to give investors easier access to a potential risk management product to help dampen volatility and, in some cases, hedge against tail risk in portfolios."

Research has shown that physically-backed precious metal ETFs have low correlation to equities and fixed income, which potentially provides a diversification benefit.2

Commodity markets experienced an exceptionally good ride in 2016. Investor appetite for commodities led to some record inflows for ETF Securities, which saw its global assets under management (AUM) increase approximately $5.9 billion, the best performance since 2009. Commodity net inflows were $4.2 billion for 2016, pushing ETF Securities commodity AUM to $17.6 billion. Gold saw a very strong year with ETF Securities inflows of $3.4 billion gloally.3 

"We are seeing momentum in these markets, and want to share that with investors through the ETFs on these platforms" Dunn added.

"Precious metal investment vehicles, like gold and silver ETFs, are often seen as 'safe haven' investments because they are composed of tangible commodities that keep their intrinsic value," said Rich Messina, SVP, Investment Product Management at E*TRADE. "With the addition of three ETF Securities precious metal ETFs, investors can gain exposure to this important investment type with ease, and now without paying a commission through E*TRADE."

1Schwab ETF OneSource® as of 1/4/17
2ETF Securities research as of 2/08/17
3 ETF Securities research as of 2/08/17
* You can buy and sell the exchange-traded funds (ETFs) available through the E*TRADE Securities commission-free ETF program without paying brokerage commissions. To discourage short-term trading, E*TRADE Securities may charge a short-term trading fee on sales of participating ETFs held for less than 30 days.

About ETF Securities

ETF Securities U.S. is a specialist commodity Exchange Traded Product (ETP) provider, backed by a global track record of innovation. Our approach is built on understanding investors' changing needs to construct accessible solutions, enabling them to diversify their portfolios beyond traditional asset classes and strategies. We produce timely and impactful market insights to support advisors, and their clients, in reaching informed investment decisions.

For further information, please visit: www.etfsecurities.com/us.   

For media inquiries, please contact:

JConnelly
James Doyle
T: (973) 850-7308
E: jdoyle@jconnelly.com

Important Risks

The ETFS Silver Trust, ETFS Gold Trust, ETFS Platinum Trust, ETFS Palladium Trust and ETFS Precious Metals Basket Trust are not investment companies registered under the Investment Company Act of 1940 or a commodity pool for purposes of the Commodity Exchange Act. Shares of the Trusts are not subject to the same regulatory requirements as mutual funds. These investments are not suitable for all investors. Trusts focusing on a single commodity generally experience greater volatility.

Trusts focusing on a single commodity generally experience greater volatility. Please refer to the prospectus for complete information regarding all risks associated with the Trusts. Shares in the Trusts are not FDIC insured and may lose value and have no bank guarantee.

The value of the Shares relates directly to the value of the precious metal held by the Trust and fluctuations in the price could materially adversely affect investment in the Shares. Several factors may affect the price of precious metals, including:

  • A change in economic conditions, such as a recession, can adversely affect the price of the precious metal held by the Trust. Some metals are used in a wide range of industrial applications, and an economic downturn could have a negative impact on its demand and, consequently, its price and the price of the Shares;
  • Investors' expectations with respect to the rate of inflation;
  • Currency exchange rates;
  • interest rates;
  • Investment and trading activities of hedge funds and commodity funds; and
  • Global or regional political, economic or financial events and situations. Should there be an increase in the level of hedge activity of the precious metal held by the trust or producing companies, it could cause a decline in world precious metal prices, adversely affecting the price of the Shares.  Should there be an increase in the level of hedge activity of the precious metal held by the Trusts or producing companies, it could cause a decline in world precious metal prices, adversely affecting the price of the shares.

Also, should the speculative community take a negative view towards the precious metal held by the Trusts, it could cause a decline in prices, negatively impacting the price of the shares. There is a risk that part or all of the Trusts' physical precious metal could be lost, damaged or stolen. Failure by the Custodian or Sub-Custodian to exercise due care in the safekeeping of the precious metal held by the Trusts could result in a loss to the Trusts.

The Trusts will not insure its precious metals and shareholders cannot be assured that the custodian will maintain adequate insurance or any insurance with respect to the precious metals held by the custodian on behalf of the Trust. Consequently, a loss may be suffered with respect to the Trust's precious metal that is not covered by insurance.

Diversification does not eliminate the risk of experiencing investment losses.

Commodities generally are volatile and are not suitable for all investors.

Investors buy and sell shares on a secondary market (i.e., not directly from Trusts). Only market makers or "authorized participants" may trade directly with the Trusts, typically in blocks of 50k to 100k shares.

Commodities generally are volatile and are not suitable for all investors.  This material must be accompanied or preceded by the prospectus. Carefully consider each Trust's investment objectives, risk factors, and fees and expenses before investing. Please click here to view the prospectus.

ALPS Distributors, Inc. is the marketing agent for ETFS Silver Trust, ETFS Gold Trust, ETFS Platinum Trust, ETFS Palladium Trust and ETFS Precious Metals Basket Trust.

Steven Dunn is a registered representative of ALPS Distributors, Inc.

ETF001113 2/16/2018

 

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SOURCE ETF Securities