New ETFs Off to Roaring Start

NEW YORK (TheStreet) -- In a mere 10 trading days, the newly launched ETF Securities Physical Platinum Shares(PPLT) and Physical Palladium Shares(PALL) have amassed more than $500 million in assets.

The new physically backed platinum and palladium ETFs are the most recent funds from ETF Securities, a global ETF issuer. PALL and PPLT are the first U.S.-traded funds to offer investors exposure to bullion-backed platinum and palladium trusts.

It is not surprising that investors have gravitated to these new precious metals ETFs, or that ETF Securities was the first firm to debut such funds in the U.S. ETF Securities launched the first physically backed gold ETFs in Australia and London in 2003. SPDR Gold Shares(GLD), the first physically backed gold fund in America, is currently the second-largest ETF by assets in the U.S.

ETF Securities launched its first two U.S.-traded funds in 2009 -- the firm's own physically backed gold and silver funds, designed to compete with entrenched U.S. competitors like GLD and iShares Silver(SLV). As of Jan. 25, the ETFs Physical Silver Shares(SIVR) and ETFs Physical Gold Shares(SGOL) had attracted approximately $134 million and $335 million in U.S. assets respectively.

"We're excited to be able to bring this unique offering to the US ETF market," noted William Rhind, head of sales & marketing for ETFS Marketing LLC. "We have seen good demand and investor interest in all four physically backed ETFs; SGOL, SIVR, PPLT & PALL."

"Investors should think about investing in platinum and palladium as they typically exhibit a higher volatility than gold and are more geared to a global economic recovery," Rhind added.

The highly anticipated platinum and palladium funds offer the same transparency and convenience of their familiar gold and silver peers. Rather than having to gain exposure to precious metals through jewelry, coins or futures contracts, investors can use physically backed ETFs to track the price of rare and expensive commodities.

While there has been some resistance to the new funds among the small group of buyers and sellers who formerly dominated the U.S. platinum marketplace, early asset flows indicate that investors are embracing these new investment vehicles.