The world's top aluminum producer announced that it will
consider supplying the metal to a physically-backed aluminum
exchange traded fund (
), but it won't sponsor the fund.
Donny Kwok for Reuters reports that
Rusal is an aluminum producer and doesn't intend to get into the
business of launching financial products.
Investment banks are seeking a company that can supply them with
aluminum, which would be used to back an aluminum ETF. Rusal just
might fit the bill.
Rusal also said in a corporate presentation earlier this month
that it was considering a Hong Kong listing for an aluminum-backed
exchange traded fund, for which it may supply metal. [
The Price Impact of An Aluminum ETF.
Rusal has the longest position on aluminum and the market in
Asia is of interest to metals investors. But the United States or
Europe is expected to get first crack at an aluminum ETF. While you
wait for the launch, consider aluminum exposure via:
iPath DJ-AIG Aluminum ETN (NYSEArca: JJU)
iShares Dow Jones U.S. Basic Materials (NYSEArca:
Gives a small amount of exposure to aluminum producers.
Tisha Guerrero contributed to this article.