The iShares Physical Gold, Physical Silver, Physical Platinum and Physical Palladium ETCs will aim to track the day-to-day price of the underlying physical metals, as published on the London Bullion Market Association for gold and silver, and by the London Platinum and Palladium Markets.
The Physical Silver, Physical Platinum and Physical Palladium ETCs have a total expense ratio of 0.4 per cent, while the Physical Gold ETC is slightly cheaper with a TER of 0.25 per cent.
However, unlike its biggest competitor ETF Securities, iShares has confirmed it is not looking to launch any physical industrial metal ETFs into the market just yet.
Head of product development at iShares Axel Lomholt commented: "Precious metals are often considered a hedge against inflation as well as a diversification tool."
"Physically backed ETCs give investors precise exposure in a form that offers trading flexibility, cost efficiency and is more convenient than holding the products themselves."
"However, we are not looking into launching any industrial metal versions of the product just yet. These metals are far harder to store and manage."
"They are far bulkier, and need far more warehouse space. Never say never, but it’s not something we’re thinking about at the moment."
Lomholt also says there were ethical repercussions of hoarding vital non-precious metals such as copper and nickel.
In a Trustnet article earlier this year, chief executive of Evercore Pan Asset Management Christopher Aldous highlighted his concerns with ETF Securities’ launch of physically backed industrial metal ETCs.
Performance of funds since Jan-2011
Source: Financial Express Analytics
Joe Linhares, head of iShares EMEA, added: "These products have been designed to provide exposure to precious metals in a way that meets our core values of transparency, liquidity, trading flexibility and investor protection."
According to Linhares, the FSA’s plan to examine the ETF and ETC market amidst claims it is too complex is a result of increased demand for this type of product.
"The explosion in ETF issuance is the reason they are looking into this. There are a variety of providers in the market place and we have highlighted our efforts around due diligence," he said.