ETFS launches platinum and palladium ETFs in US

ETF Securities (ETFS) has launched physically-backed platinum and palladium ETFs on NYSE Arca in the US.

The ETFS Physical Platinum Shares and the ETFS Physical Palladium Shares are designed to reflect the performance of the price of platinum and palladium respectively, less the funds' expenses.

The funds are backed by platinum and palladium allocated bullion, stored in vaults located in London and Switzerland by the custodian JP Morgan Chase.

The stored precious metals will also undergo a bi-annual audit performed by an independent external bullion auditor.

ETFS Marketing head of product and business development Fred Jheon says commodity ETFs have shown strong growth over the past six years and global demand for precious metals via these products is increasing.

He says: "Unlike many other commodities, precious metals are durable, homogenous and easily stored, enabling the ETFs to be backed by allocated physical ingots or plates which have transparent pricing."

He adds these funds are typically uncorrelated to equities, providing investors with an additional tool for portfolio diversification.