This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

ETF Securities: What's Next

Stock quotes in this article: SIVR, SGOL, SLV, IAU, PALL, PPLT

NEW YORK ( TheStreet) -- At the start of the week, investors learned that a leading provider of domestic and international commodity-linked exchange traded products may be putting itself on the selling block.

Although the news is noteworthy, investors should remain calm and avoid taking any brash action as long as the overall impact remains unknown.

ETF Securities has become a notable success story within the U.S. ETF universe. Although the company had managed to gather plenty of attention in the international ETF realm since the first half of the decade, it was not until 2009 that domestic investors were able to access the company's products.

Despite being introduced into a highly competitive environment, the company's first U.S.-listed products -- ETFS Physical Silver Shares (SIVR) and ETFS Physical Swiss Gold Shares (SGOL) -- have managed to hold their own, boasting $619 million and $1.8 billion in assets, respectively.

Like other companies such as Vanguard, ETF Securities has turned to costs in order to attract fans to its product line. The SIVR's 0.39% expense ratio undercuts the veteran iShares Silver Trust (SLV) by 11 basis points. SGOL, meanwhile, held rank as the cheapest physically-based gold ETF until Blackrock (BLK) decided to slash the expenses associated with iShares Gold Trust (IAU) in mid-2010.

In addition to taking aim at veteran products, the company has become a precious metal pioneer as well. In the period following the launch of SIVR and SGOL, the firm introduced the first-ever ETFs backed by physical stockpiles of both platinum and palladium. Additionally, the launch of the ETFS Physical Precious Metals Basket Shares (GLTR) and the ETFS Physical White Metals Basket Shares (WITE) has allowed investors to gain one-stop-shop exposure to a diversified basket of physical precious metals.

According to the November fund flow data compiled by the National Stock Exchange, the company's line of seven products had managed to accumulate nearly $4 billion in assets. In Europe, meanwhile, the company is reportedly the fourth largest fund provider in terms of AUM.

With this level of success, it is understandable that followers of the ETF industry were caught off guard by reports that the company may now be up for sale. The Financial Times reports that the company is looking for $1.6 billion. Goldman Sachs (GS), the firm that has been hired as an adviser for the sale, is reportedly asking that unconditional offers be submitted before Christmas.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,804.71 -238.19 -1.40%
S&P 500 1,946.16 -26.13 -1.32%
NASDAQ 4,422.0850 -71.3050 -1.59%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs