PHYS is Not an ETF
March 03, 2010 at 17:00 PM EST
I previously wrote an article entitled PHYS: Now You Can Store Your Gold in Canada . After discussions with Michael Traynor of the National Stock Exchange, I agree with their conclusion that PHYS is not an ETF. In some ways, PHYS is similar to other physically-backed gold products such as SPDR Gold Shares (GLD), iShares COMEX Gold Trust (IAU), and ETFS Physical Swiss Gold Shares (SGOL). However, it lacks one vital feature – the daily creation/redemption process. As I have said many times, this is the one feature that sets apart ETFs from other products. A closer…