ETF Securities USA LLC (ETFS) announced today that the assets under management of the ETFS Silver Trust (SIVR) now exceeds $100m as of August 20, 2009 after experiencing high trading volumes since launch.
ETFS Silver Trust (SIVR) began trading on the NYSE ARCA on July 24, 2009 and we believe the inflows seen since inception indicate that investors are becoming increasingly bullish towards silver.
The objective of the newly listed shares is to reflect the performance of the price of silver bullion, less the Trust’s operating expenses. The Trust is open ended and is designed for investors who want a cost-effective(1) and convenient(2) way to invest in silver as well as diversify their silver holdings.
The highlights of the new offering are:
- Physically-backed: ETFS Silver Trust’s shares represent interest in physical silver bullion held in a London Bullion Market Association (LBMA) approved secured vault
- Expense Ratio: ETFS Silver Trust introduced with an expense ratio of 0.30% p.a. until July 24, 2010, capped at maximum of 0.45% thereafter (3)
- Competitively Priced: ETFS Silver Trust expense ratio is one of the lowest priced physically-backed silver product in the US exchange traded product market
- Records: All silver bar numbers published daily to: www.etfsecurities.com
Commenting on the launch and flows, William Rhind, Head of Sales & Marketing for ETFS Marketing LLC, commented:
“The ETFS Silver Trust is still within its first month of trading and we continue to be impressed by the flows we have seen. Initial inflows indicate to management that SIVR has captured the mood of American investors who are looking to gain exposure to Silver through a cost effective, transparent, physically backed product.”
For more information on the new issue or ETF Securities please contact the US marketing agent, ETFS Marketing on 212-918-4954 or visit our website: www.etfsecurities.com
The ETFS Silver Trust is not an investment company registered under the Investment Company Act of 1940 or a commodity pool for purposes of the Commodity Exchange Act. Shares of the Trust are not subject to the same regulatory requirements as mutual funds. These investments are not suitable for all investors. Please read the prospectus carefully before investing.
The Sponsor expects that, for many investors, costs associated with buying and selling the Shares in the secondary market and the payment of the Trusts ongoing expenses will be lower than the costs associated with buying, selling, storing and insuring silver bullion in a traditional allocated silver bullion account.
|(2)||The Shares will trade on the NYSE Arca and will provide institutional and retail investors with indirect access to the silver bullion market.|
|(3)||With its first US product, ETF Securities USA LLC is pleased to waive a portion of its sponsor fee, reducing the expense ratio of SIVR to 0.30% p.a. until July 24, 2010, capped at maximum of 0.45% thereafter. Ordinary brokerage fees do apply.|
William Rhind is a registered representative of ALPS Distributors Inc.
Risks and Important Considerations
The value of the Shares relates directly to the value of the silver held by the Trust and fluctuations in the price of silver could materially adversely affect an investment in the Shares. Several factors may affect the price of silver, including: A change in economic conditions, such as a recession, can adversely affect the price of silver. Silver is used in a wide range of industrial applications, and an economic downturn could have a negative impact on its demand and, consequently, its price and the price of the Shares; Investors' expectations with respect to the rate of inflation; Currency exchange rates; Interest rates; Investment and trading activities of hedge funds and commodity funds; and global or regional political, economic or financial events and situations. Should there be an increase in the level of hedge activity of silver producing companies, it could cause a decline in world prices, adversely affecting the price of the Shares. Also, should the speculative community take a negative view towards silver, it could cause a decline in world silver prices, negatively impacting the price of the Shares. There is a risk that part or all of the Trust's silver could be lost, damaged or stolen.
The Trust is new and has limited operating history. Commodities and futures generally are volatile and are not be suitable for all investors. Trusts focusing on a single commodity generally experience greater volatility. Please refer to the prospectus for complete information regarding all risks associated with the Trust.
Shares in the Trust are not FDIC insured, may lose value and have no bank guarantee.
Please read the prospectus carefully before investing. Click here to review the prospectus
ALPS Distributors, Inc. is the marketing agent for ETFS Silver Trust. ETF Securities Ltd. or its affiliates is not affiliated with ALPS Distributors, Inc. Certain marketing services may be provided forETFS Silver Trust by ETFS Marketing LLC.
Although Shares of the Trust may be bought and sold on the exchange through any brokerage account, they are not individually redeemable directly from the Trust. Investors may acquire Shares and tender them for redemption through the Trust in Basket aggregation only. Please see the prospectus for more details.
This press release contains “forward-looking statements” with respect to results of operations, plans, objectives, future performance and business. Statements preceded by, followed by or that include words such as “may”, “will”, “should”, “expect”, “plan”, “anticipate”, “believe”, “estimate”, “predict”, “potential”, or similar expressions are intended to identify some of the forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are included, along with the statement, for purposes of complying with the safe harbor provisions of that Act. All statements (other than statements of historical fact) included in this press release that address activities, events or developments that will or may occurring the future, including such matters as changes in commodity prices and market conditions (for silver and the Shares), the Trusts operations, the Sponsors plans and references to the Trusts future success and other similar matters are forward looking statements. These statements are only predictions. Actual events or results may differ materially.
The ETFS Silver Trust (Registration No. 333-156307) has filed a registration statement (including a prospectus) with the U.S. Securities and Exchange Commission (SEC) for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the Trust has filed with the SEC for more complete information about the Trust and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the Trust will arrange to send you the prospectus if you request it by calling collect 1-212-918-4954. The Trust’s prospectus is also available, free of charge, at the website of ETF Securities USA LLC here.
William C. Ferri, 212-754-5428
Laura Stevens, +44 20 7448 4351
All Other US Inquiries:
ETFS Marketing LLC