Unique Diamond-backed ETF Awaiting SEC Approval

Bloomberg reported that one exchange-traded fund (ETF) waiting for approval from the Securities and Exchange Commission (SEC) is the IndexIQ Physical Diamond Trust, a unique fund that would store diamonds in a small Antwerp-based vault.

As quoted in the market news:

The closest thing out there is the PureFunds Diamond/Gemstone ETF (GEMS), which tracks companies involved in the diamond business.

The biggest question here: How to value diamonds and make a net asset value investors can believe in? If the ETF can answer that question and establish a logical system, it could be attractive to commodity investors looking for an alternative to gold.

Click here to read the full Bloomberg report.