GLTR: A Precious Metals Basket With Fixed Ounce Weightings
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....MORE