How can you not keep reading after that shining headline?..courtesy of Jason Kephart over at InvestmentNews..

In the category of “what will they think of next?” IndexIQ has apparently scratched a new surface–IN reports that IQ has filed to offer the first physically-backed diamond ETF.

The IQ Physical Diamond Shares ETF will work along the same line as other physically backed precious metal ETFs, such as the $69 billion SPDR Gold Shares ETF (GLD). Rather than tracking an index, the ETF will be backed by a vault of actual diamonds in Antwerp, Belgium.

As the fund receives new money it will purchase more diamonds and as it loses money it will sell off the gems to pay for the redemption. One of the ‘ho-hums” in the filing is that this product isn’t going to attract Liz Taylor wanna-bees; IndexIQ intends to invest only in one-carat, industry-standard diamonds that are readily available and “in common use among diamond dealers,” according to its prospectus.

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