PureFunds made its debut on Thursday with the launch of three innovative commodity-related exchange-traded funds (ETFs) on the NYSE Arca.
ETF newcomer PureFunds rolled out its debut suite of funds on Thursday in a launch that included the world’s first ETF tracking companies engaged in the diamond and gemstone industry.
The three funds include the first ever ETF to hold shares exclusively of companies engaged in the diamond and gemstone industry.
New Jersey-based PureFunds becomes the latest entrant into the highly competitive US ETF marketplace.
The company aims to provide investors with easy access to niche sectors through pure-play ETFs, and envisages further launches of tactical ETFs that the market desires but do not currently exist.
The funds, which track ISE indices and feature an annual expense ratio of 0.69%, are:
PureFunds ISE Diamond/Gemstone ETF (GEMS), which seeks to replicate the price and yield performance of the ISE Diamond/Gemstone Index of companies actively engaged in the gemstone industry including exploration, production, or sales of precious stones.
PureFunds ISE Mining Service ETF (MSXX), which seeks to replicate the price and yield performance of the ISE Mining Service Index of the largest and most liquid companies involved in facilitating the operations of the mining industry as a whole, including companies that manufacture, lease, sell and provide equipment, as well as, companies that provide consulting or other services to the industry.
PureFunds ISE Junior Silver ETF (SILJ), which seeks to replicate the price and yield performance of the ISE Junior Silver Miners Index, a benchmark for investors interested in tracking small-cap public companies active in the silver mining exploration and production industry.
Commenting on the launch, Paul Zimnisky, CEO of PureFunds, said: “Diamonds and other gemstones have traditionally been a difficult asset to invest in because there is no spot or futures market, so we developed an ETF that exclusively invests in companies that produce, refine, sell, or hold gemstone inventory.”
He added: “We believe new demand for diamonds and other gemstones will continue to come from developing parts of the world where the trend of gifting gemstones is catching on fast. Investors are also driving demand, as gemstones are being bought as a hedge against inflation, the same way precious metals are. We expect the companies in this fund to benefit if the demand for gemstones remains favourable.”
Kris Monaco, head of New Product Development at ISE, said: “By partnering with PureFunds, we are able to combine our extensive experience in index development with PureFunds’ innovative investment concepts in precious metals and other hard assets. As we look to deepen our partnerships in the ETF area, we are also pleased that PureFunds has been able to leverage ISE’s product development guidance, marketing support, and financing resources to successfully introduce the PureFunds products to market.”