ETF Securities

ETF Securities Limited carved out a significant niche in the global financial markets as a specialist provider of exchange-traded products (ETPs).

The company was founded in 2005 by Graham Tuckwell, an Australian entrepreneur with a background in economics, law, and investment banking. Tuckwell's journey began with degrees from the Australian National University, followed by roles at Credit Suisse First Boston, Schroders, and as an advisor to the Australian Prime Minister's Department. This experience culminated in a pivotal moment in 2003 when he pioneered the world's first commodity listing on a stock exchange with the launch of a gold bullion security, a precursor to the formal establishment of ETF Securities. This venture effectively invented the concept of gold exchange-traded funds (ETFs).

ETF Securities specialized in developing and managing a broad array of ETPs, which are investment funds traded on stock exchanges, much like stocks. The firm's primary clients were institutional and retail investors seeking accessible and diversified exposure to various asset classes. Its business model revolved around creating, managing, and listing these products, generating revenue from management fees charged as a percentage of the assets under management (AUM). The company's product suite was particularly strong in commodities, currencies, and leveraged and short strategies. One of its landmark products was the world's first physical gold ETF, launched in 2003.

A significant milestone in the company's history occurred in November 2017, when WisdomTree Investments announced its agreement to acquire the majority of ETF Securities' European business for approximately $611 million. This deal included the firm's commodity, currency, and short-and-leveraged ETPs, representing about $17.6 billion in AUM. The acquisition, completed in April 2018, elevated WisdomTree to become the ninth-largest ETP sponsor globally. Tuckwell noted that after 15 years, it was time to hand the business over to a firm that could continue its growth. Following this major sale, the remaining parts of the business continued, including a fast-growing Australian operation. Subsequently, the Australian arm, ETF Securities Australia, was acquired by Mirae Asset Global Investments and its subsidiary Global X in June 2022, after which it was rebranded to Global X. After the disposals of its asset management businesses, the parent company was renamed ETFS Capital, a strategic investment firm chaired by Tuckwell, which now invests in companies within the ETF ecosystem.

Keywords: ETF Securities, Graham Tuckwell, exchange-traded products, ETP, commodity ETFs, gold ETF, WisdomTree acquisition, currency ETPs, leveraged ETPs, short ETPs, asset management, investment products, Mirae Asset, Global X, financial markets, ETFS Capital, physical gold ETF, thematic investing, Australian ETFs, European ETFs