ETF Securities Launches First U.S. Product

ETF Securities Ltd (ETFS), a provider of exchange-traded products on the London Stock Exchange, has launched its first U.S. product.

The ETFS Silver Trust (SIVR) has been listed on the NYSE Arca. According to a press release, the objective of ETFS Silver Trust’s 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 and convenient way to invest in Silver as well as diversify their silver holdings,” the company said.

ETFS Silver Trust is backed by physical silver bullion held by HSBC in London. The Shares represent an interest in physical silver bullion owned by the Trust. The physical silver bullion of the trust is subject to minimal counterparty or credit risks, which contrasts with other offerings that achieve bullion exposure through the use of derivatives, the press release said.

With its first U.S. product, ETF Securities USA LLC said it will 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.