MATT COLLINS, CFA
Director, Head of US Product Operations
Tell us why you’re here today.
Sure we’re celebrating SGOL which is our physical gold product. It’s the only gold product that vaults in one known location in the world. And also glitter, GLTR, which is the only precious metals basket ETF in the market for clients that want a more diversified precious metal experience.
Tell us about ETF Securities and how you serve your clients.
Sure. ETF Securities is the third largest commodity ETF provider in the world. We’re based in London. We've been around for several years in the US, since late 2009, and we manage about 2 1/2 billion dollars of US ETF assets.
Tell us about developing the world’s first gold exchange traded commodity.
So we developed the first gold ETF in the world. We did it in Australia versus the US but we’ve been in the US since 2010. We did it because gold is really one of the most historic and well-known investments in the world but up until 2003, there wasn't a lot of transparency. It was hard, difficult for people to buy and sell gold transparently. So we launched an ETF so clients could buy and sell gold in an ETF format but most importantly in a very transparent low-cost way.
What trends are driving the demand for that product?
We’ve seen two levels of demand. This year, we’ve seen a lot of people expecting volatility in the market so that they transition over to gold. But for the long-term clients that we talk to, they're starting to understand that over 50% of gold comes from jewelry demand, particularly from China. So there’s a very progressive component to gold that's more and more people are starting to think about gold for a long-term portfolio allocation.
Why focus on commodities?
Commodities, for us, are a natural diversifier for a portfolio, particularly for gold ETF's. I think the word we want to get out is commodities are very progressive. If you're looking at platinum and palladium which are two of the four precious metals, they are very industrial. There's a very progressive component – they’re used for pollution abatement which is an emerging trend, particularly in China.
How does the team seek out relevant opportunities?
So, in our perspective, the ETF industry is in boom times, right? There’s a tremendous amount of issuers and products out there. From our perspective, the industry’s going to start to move to specialist providers. So ETF providers that have experience managing a certain type of product and that can give clients the resources. So we’re really a commodity provider, globally, and we’re going to focus on that market because we feel like clients are going to transition to providers that know what they’re doing and have experience doing it.
What’s next for the industry and ETF Securities?
ETF Securities - today is all about sort of reenergizing our business. We’re pouring a tremendous amount of capital into our business, hiring a distribution team, capital markets research. So today we've been on the New York Stock Exchange since 2009, early 2010, now are really going to start to focus on the US business and see where it takes us.
In your opinion, what are the primary drivers behind the ETF market?
I would say in terms of drivers for the ETF industry, it’s absolutely about innovation. We have a tremendous amount of providers out there, teams working to find out what’s the next best product. And certainly clients can be skeptical about that development, but from our perspective, if they focus on the exposures and the resources that providers are willing to give to these products, that's a really great thing for the industry.
Why do you list with NYSE?
Our business is built on trust and transparency with gold ETF's and precious metals. The New York Stock Exchange is the epitome of trust and transparency so we couldn't be more proud to list for the New York Stock Exchange.
Hear Matt Collins Discuss Precious Metals