The demand for precious metals is growing, leading to high prices of metals like platinum, palladium, gold and silver. Palladium prices jumped more than 30% in 2022, according to World Bank data.
The global precious metals market size is forecast to grow at the rate of 6.8% annually over the next decade, according to Grand View Research. As a result, the market is projected to reach $414.5 billion by 2030, from $241 billion in 2022.
The ReelShares Precious Metals Fund invests in precious metal companies and seeks long-term capital appreciation. It targets companies with potential to improve their market value over time.
These are the details that investors interested in purchasing shares of ReelShares Precious Metals Fund should know.
The fund’s investment area and return targets
The ReelShares Precious Metals Fund invests at least 80% of its assets in precious metals-related investments around the globe. For equity investments, the fund invests in domestic and foreign companies that generate at least 50% of their revenue from precious metals business. The fund allocates up to 40% of its assets to investments in emerging markets.
The fund seeks to deliver annual returns of at least 47.9%, and average internal rate of return of 71%.
ReelShares Precious Metals Fund share class
The fund offers two classes of shares for investors. One class of shares is for individual investors and other for institutional investors. The individual and institutional accounts differ in initial investment requirements and annual fees.
Initial investment requirements
The minimum initial investment for the individual investor share class is $5,000. Additional share purchases on the individual account require a minimum of $100 per transaction.
The minimum initial investment amount for the institutional investor share class is $10,000. Additional purchases on the institutional account requires a minimum of $1,000.
The fund supports automatic investing plans. The automatic plan allows investors to purchase additional shares regularly, such as on a monthly basis. The initial investment requirement for individual investors on the automatic plan is $1,000. The initial investment for institutional investors on the automatic plan is $2,000.
ReelShares Precious Metals Fund account fees
The fund charges an annual fee to investors to cover its operating expenses. The fee is assessed as a percentage of the account value. The fee is 1.77% on the individual investor account and 1.16% on the institutional investor account.
For the initial investment, investors can purchase shares of ReelShares Precious Metals Fund directly from Reel Shares or through a financial intermediary. The shares of the fund can be traded on the NYSE after the initial purchase.