A new exchange-traded fund (ETF) designed to reflect the price of physical silver, platinum and palladium is being launched tomorrow (Friday, 3rd December)

Fluctuations in ETF Securities' EFTS White Metals Basket Trust share price will depend on the performance of the metals' price proportionate to the quantities held by the trust, minus operating expenses.

The trust is aimed at individuals who wish to invest in the metals while minimising credit risk, ETF Daily News reports.

Earlier this week, it was revealed that one of the three new commodity ETFs planned by United States Commodity Funds includes a fund linked to platinum and palladium.

The United States Metal Index Fund would be linked to ten metals - aluminum, copper, zinc, nickel, tin, lead, gold, silver, platinum and palladium.

Each metal would be given a base weight and monthly decisions would be made on whether the metal should be overweighted or underweighted against the index's base allocation.

Judgement would be based on market liquidity and the metal's performance over the four-week period.

Sources:



ETF Securities Set To Begin Trading The “ETFS White Metals Basket Trust” (WITE) This Friday December 3rd (01/12/10)



USCF Files For Three New Commodity ETFs (30/11/10)



Gold rises over 1 percent on euro zone debt worries (30/11/10)



Three new U.S. ETFs for commodity investing (01/12/10)

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