GLTR: A Precious Metals Basket With Fixed Ounce Weightings

October 22, 2010 by  
Filed under Commentary, ETF IPOs (New ETFs), ETFs

ETF Securities launched the ETFS Precious Metals Basket Shares (GLTR) today (10/22/2010), making it the first US-listed physically backed precious metal basket ETF to hold gold, silver, platinum, and palladium.

GLTR’s objective is to provide one-stop shopping for investors seeking to hold all four metals with specific fixed weightings.  The fund’s prospectus contains no provision to alter or rebalance the holdings.  Therefore, the number of ounces of each metal will remain fixed and the percentage allocations will be determined by future price swings of each holding.

On a per share basis, the fixed amount of bullion and current percentage allocations are 0.03 ounces of gold 52.8%, 1.1 ounces of silver 34.0%, 0.004 ounces of platinum 8.7%, and 0.006 ounces of palladium 4.5%.  The firm provided no explanation regarding how the initial relative weightings were determined.

The fund has an expense ratio of 0.60% and additional information can be found in the press release, overview page, GLTR fact sheet (pdf), and the prospectus (pdf).

Investors comfortable with the bullion allocations of GLTR (“Glitter”) will likely find this fund a convenient way to gain exposure to all four metals.  Those wishing to control their individual allocations will be better served by the single-metal funds from ETF Securities:

Disclosure covering writer, editor, and publisher:  No positions in any of the securities mentioned.  No positions in any of the companies or ETF sponsors mentioned.  No income, revenue, or other compensation (either directly or indirectly) received from, or on behalf of, any of the companies or ETF sponsors mentioned.

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