On Aug. 31, a plan was filed with the Securities and Exchange Commission to launch an exchange-traded fund that will hold shares of companies in the diamond and gemstone industry.
As with other attempts to create diamond-related ETFs, the Diamond/Gemstone ETF fund, from Madison, N.J.-based PureFunds, wants to take advantage of an expected differential in diamond supply and demand. But it does this by tracking the performance of companies that produce, explore, and sell gemstones, including Petra Diamonds Limited, Harry Winston Diamond Corporation, and Chow Tai Fook.
The PureFunds ISE Diamond/Gemstone ETF will be traded under the name GEMS. Its founders said they hope to debut it in the fourth quarter.
“The demand for diamonds and other gemstones has substantially increased over the past years as global investors look for hard assets as a potential safe haven from the degradation of fiat currency,” said Paul Zimnisky, co-founder and CEO of PureFunds, in a statement.