Diamond ETF Filing Submitted to SEC

(IDEX Online News) – IndexIQ, a New York based investment firm, filled with the Securities and Exchange Commission (SEC) to register IQ Physical Diamond Trust, an exchange traded fund (ETF) backed by diamonds.

According to the filling, the trust will hold one carat, GIA certified natural gem quality diamonds, "constituting (…) of readily available, industry standard diamonds in common use among diamond dealers."

According to the proposal, investors will buy shares in the trust, which in turn will buy diamonds it will hold in Antwerp.

"Since 2003, there has been a significant increase in diamond prices due to, among other things, increased consumer spending in the United States and Asia, targeted marketing of diamond jewelry and accelerating shortage of high-quality rough diamond supplies," IndexIQ states in the filing.

It emphasized that the trust will not trade in derivative instruments tracking the price of diamonds or the performance of the diamond industry, but rather take delivery of diamonds that meet its standards.