The first exchange-traded fund targeting silver began trading on the American Stock Exchange Friday.
The iShares Silver Trust is managed by Barclays Global Investors. Bank of New York was appointed trustee for the new exchange-traded portfolio.
The fund, based on a proprietary process developed by Bank of New York's depositary receipt division, provides a cost-effective way to invest in silver, the bank said. The trust's investment objective is to reflect the performance of the price of silver, less the expenses of the trust's operations.
The New York bank's global fund services group is to manage the trust's day-to-day administration, including the calculation of net asset values and net asset values per share, selling silver as needed to pay trust expenses and redeem shares, and receiving and processing purchase and redemption orders for silver shares on behalf of the trust.
