Commodities & Metals

ETF Launch: Precious Metals All Mixed Together (GLTR, SGOL, PPLT, PALL)

They say there is an ETF for just about any strategy.  Gold investors and other precious metal investors are now getting a new ETF that will trade as a single basket of metals.  The ETFS Physical Precious Metal Basket Shares (NYSE: GLTR) is launching today.  This is an ETF that is comprised of Gold, Silver, Platinum and Palladium all under one vehicle.   GLTR will effectively act as a mix of ETFS Physical Swiss Gold Shares (NYSE: SGOL), ETFS Physical Platinum Shares (NYSE: PPLT), and ETFS Physical Palladium Shares (NYSE: PALL).  The ETF holds actual bullion rather than just acting as an ETF of ETFs.

The ETF will hold physical bullion of gold, silver, platinum, and palladium and that bullion will be held in vaults at custodian JPMorgan Chase Bank.  Gold and Silver will be held in London and Platinum and Palladium will be held in London or Zurich.  The sponsor’s fee for GLTR will be 0.60%.

Something new… This is the first ETF of its kind that we have seen.  Other commodities have been grouped, but this is the first for a basket of precious metals that we have seen.  The ticker “GLTR” pretty much says it all… “Glitter.”  Cute.

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JON C. OGG