London-based ETF Securities is widening commission-free access to its range of physically-backed precious metal ETPs following agreements with platform providers E*TRADE and Interactive Brokers. The firm notes the move is in response to significantly greater demand for its products since the programme’s initial adoption with Schwab ETF OneSource in 2013.

Investors can now enjoy commission-free trading on ETF Securities’ precious metals ETFs from platform providers E*TRADE, Interactive Brokers, and Schwab ETF OneSource.

The ETPs available under the agreement include exposures to gold, silver, platinum, palladium and a broad basket of precious metals, as outlined below:

ETFS Physical Swiss Gold Shares (SGOL) – Total expense ratio (TER): 0.39%.
ETFS Physical Precious Metals Basket Shares (GLTR) – TER: 0.60%.
ETFS Physical Silver Shares (SIVR) – TER: 0.30%.
ETFS Physical Platinum Shares (PPLT) – TER: 0.60%.
ETFS Physical Palladium Shares (PALL) – TER: 0.60%.

All of the ETPs are available commission-free on the Schwab ETF OneSource and Interactive Brokers platforms. E*TRADE currently offers commission-free trading on the gold, silver and precious metals basket ETPs.

Research conducted by ETF Securities shows that physically-backed precious metal ETPs have a low correlation to equities and fixed income, illustrating their potential benefit as a diversifier in a traditional stock/bond portfolio.

Furthermore these funds, most notably gold, have considerable safe-haven appeal and may serve to protect portfolios during significant market downturns.

Steven Dunn, Executive Director and Head of US Distribution for ETF Securities, commented: “During severe market corrections, precious metals have tended to perform positively, providing some measure of protection during selloffs. By extending the range of ETPs offered commission-free, we hope to give investors easier access to a potential risk management product to help dampen volatility and, in some cases, hedge against tail risk in portfolios.”

“Precious metal investment vehicles, like gold and silver ETPs, are often seen as ‘safe haven’ investments because they are composed of tangible commodities that keep their intrinsic value,” added Rich Messina, SVP, Investment Product Management at E*TRADE. “With the addition of three ETF Securities precious metal ETPs, investors can gain exposure to this important investment type with ease, and now without paying a commission through E*TRADE.”

A resurgence in investor appetite for commodities in 2016 led to record inflows for ETF Securities, which saw its global assets under management (AUM) increase approximately $5.9 billion, its best performance since 2009. Commodity net inflows were $4.2bn for 2016, pushing ETF Securities commodity AUM to $17.6bn. Gold in particular saw a very strong year with ETF Securities inflows of $3.4bn globally.

“We are seeing momentum in these markets, and want to share that with investors through the ETPs on these platforms” Dunn added.