ETF

Don Dion's Weekly ETF Blog Wrap

Stock quotes in this article:UUP, XRT, PPLT 

PPLT's launch couldn't have been more perfectly timed -- a result of good luck and market conditions. ETF Securities filed for PPLT and the accompanying ETFS Physical Palladium Shares(PALL) back in early 2009, first introducing the idea of a physically-backed platinum product to U.S. investors.

Already familiar with products like GLD and iShares Silver(SLV), ETF investors were ready to embrace a new way to access an extraordinarily expensive asset. Having already introduced two successful physically backed products into the U.S marketplace to compete with already-entrenched competitors, ETF Securities was ready to make its name as a first-mover in the platinum space.

As a new participant in the U.S. ETF marketplace, ETF Securities had to rely on strategy -- rather than notoriety -- when introducing PALL and PPLT. They stepped into a gap in the ETF industry and presented a new investment vehicle to an equity-wary investor pool.

In his article about the process of Oscar campaigning, Harris notes "there is no war room, per se, but there are early front-runners that fade, grassroots insurgencies, even primaries. Ultimately, most of the nominees emerge from a combination of good planning, good movies, and good luck."

PPLT has been able to capitalize on a booming segment of the ETF industry, an exciting new strategy, and a moment in market history.

While other ETFs will ultimately enter the exchange-traded space in 2010 and compete for the attention of investors, PPLT has already made its mark and this product won't be easily forgotten in the months ahead.

-- Written by Don Dion in Williamstown, Mass.

>To order reprints of this article, click here: Reprints

At the time of publication, Dion was long PowerShares DB U.S. Dollar Index Bullish and ETF Securities' ETFS Physical Platinum Shares.

Don Dion is president and founder of Dion Money Management, a fee-based investment advisory firm to affluent individuals, families and nonprofit organizations, where he is responsible for setting investment policy, creating custom portfolios and overseeing the performance of client accounts. Founded in 1996 and based in Williamstown, Mass., Dion Money Management manages assets for clients in 49 states and 11 countries. Dion is a licensed attorney in Massachusetts and Maine and has more than 25 years' experience working in the financial markets, having founded and run two publicly traded companies before establishing Dion Money Management.

Dion also is publisher of the Fidelity Independent Adviser family of newsletters, which provides to a broad range of investors his commentary on the financial markets, with a specific emphasis on mutual funds and exchange-traded funds. With more than 100,000 subscribers in the U.S. and 29 other countries, Fidelity Independent Adviser publishes six monthly newsletters and three weekly newsletters. Its flagship publication, Fidelity Independent Adviser, has been published monthly for 11 years and reaches 40,000 subscribers.

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