U.S. Equity Product Suite“Trade 98% of US Equity market with

two trades!”

ETFS Russell 1000® (US Large Cap)ETFS Russell 2000® (US Small Cap)

May 2009

January 2009

2

Contents

• Introduction to ETF Securities• ETF Platform • What are ETFs?• Trading the whole US market! • A volatility and recovery play• Key characteristics and benefits of Russell Indexes• Russell Indexes versus S&P500 and other benchmarks• ETF liquidity Model • Conclusion• Appendix

3

Introducing ETF Securities Limited

• ETF Securities is the innovator and pioneer of ETCs

• World’s first physical gold ETC, ‘An initiative of World Gold Trust Services’

• World’s first oil and carbon ETCs

• World’s first complete ETC platform

– Range of commodities exposure: Physical, Classic, Forward, Short and Leveraged

– 131 ETCs available in multi-currency: USD, Euro, Sterling & AUD

– 6 ETC segments on 6 exchanges globally

– Listed on LSE, Deutsche Boerse, NYSE-Euronext, Borsa Italiana and ASX

• World’s first thematic ETF platform

– 11 commodity-themed ETFs and the Russell 1000 and 2000

– Listed on LSE, Irish Stock Exchange, Borsa Italiana and NYSE-Euronext.

• World’s first Shariah-approved ETCs

• Over US$11 billion in total assets

4

Introducing ETF Exchange

• World’s first 3rd Generation ETF Platform

– Led by a consortium including: Citigroup, Merrill Lynch & ETF Securities

– Swap-based ETF model with multiple swap providers (counterparties)

– Credit diversification across a number consortium members, no reliance on a single bank

– True Liquidity & Competition, largest pool of authorized participants and market makers

(over 20)

• Europe’s Largest Thematic ETF Offering

– 13 new ETFs provide access to sectors not available through ETCs

– For certain commodities, commodity companies offer the only access to the underlying

commodities market

– Equities/Commodities will outperform in different parts of the commodity cycle

– Commodity companies can be a leveraged play on the underlying commodities

5

ETF Securities AUM growth•Over US$ 11 billion in total assets as at May 2009, up over 100% in past year and up over $3bn since the middle of November.

•Physical Gold and Oil ETCs have been largest AUM contributors over past year and this has intensified recently. Interest in agriculture has started to rise recently.

$0

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Energy

Diversified

Precious Metals

Industrial Metals

Agriculture & Livestock

ETF Securities' Asset Growth by SectorFrom October 2006 to May 2009, in billion USD

6

ETF Securities - Competitive Advantages

The management of ETFS pioneered ETCs

Independent of any mutli-service financial institution/bank ETF Securities only business is creating and managing ETFs and ETCs

Largest Sales and Marketing team dedicated to ETFs in Europe Highly customer focused & support customer business needs

5 ETF Securities products in top 10 traded ETFs on LSEETF Securities has more market makers than any of its competitors

Guaranteed tracking on ETCs Swap based ETFs model ensures tracking errors remains minimal

Synthetic replication most robust equity ETF model from a risk perspectivePhysically backed ETCs carry no credit risk, ETCs are 100% collateralised

Track Record

Focus

Service

Liquidity

Efficiency

Safety

7

What are Exchange Traded Funds (ETFs)?

• Open-ended UCITS III funds

• Track the underlying equity index

• Managed by asset managers

• Transparent, low cost, liquid

• Buy & hold investments. No management or maintenance required

• Listed on stock exchanges, trade & settle like equities

• Trade free of stamp duty

• Can be shorted and traded with all the same order types as an equity

8

Equity ETF Platform

Base Currency LSE

LSE (GBx) I SE Euronext

Deutsche Borse

Borsa I taliana TER Sector

UCI TS I I I

Broad Exposure

ETFS Russell 1000 (US Large Cap) USD RONE RONP ETLK RONE ETLY RONE 0.35% USA Yes

ETFS Russell 2000 (US Small Cap) USD RTWO RTWP ETLL RTWO ETLZ RTWO 0.45% USA Yes

Global Sector Exposure

ETFS WNA Global Nuclear Energy USD NUKE NUKP ETLA NUKE ETLN NUKE 0.65% Global Yes

ETFS J anney Global Water USD WATE WATP ETLF WATE ETLT WATE 0.65% Global Yes

ETFS S-Net I TG Global Agri Business USD AGRI AGRP ETLH MOOO ETLV AGRI 0.65% Global Yes

ETFS DAXglobal Alternative Energy EUR ALTE ALTP ETLG ALTE ETLU ALTE 0.65% Global Yes

ETFS Russell Global Coal USD COAL COAP ETLI KOAL - COAL 0.65% Global Yes

ETFS Russell Global Gold (Miners) USD AUCO AUCP ETLJ AUCO - AUCO 0.65% Global Yes

ETFS Russell Global Steel Large Cap USD STEE STEP ETLM STEE - STEE 0.65% Global Yes

ETFS Russell Global Shipping Large Cap USD SHIP SHPP ETLB SHIP - SHIP 0.65% Global Yes

European Sector Exposure

ETFS Dow J ones STOXX 600 Basic Resources EUR BASR BASP ETLC BASR - BASR 0.30% Europe Yes

ETFS Dow J ones STOXX 600 Oil & Gas EUR OILG OILS ETLD OILG - OILG 0.30% Europe Yes

ETFS Dow J ones STOXX 600 Utilities EUR UTIL UTIP ETLE UTIL - UTIL 0.30% Europe Yes

Exchange Codes

9

Trading the whole US market!

• First & Only European ETF issuer to offer ETFs on both market-

leading Russell 1000 and 2000 US equity indexes

• Most Comprehensive and unbiased large-cap and small-cap

barometers of the U.S. equity market

• Highly Liquid, ETFS has more market makers providing liquidity than

any of other ETFs issuers

• Cost Efficient 0.35% & 0.45% TER

• Listed on 5 European exchanges: LSE, Deutsche Boerse, Milan,

NYSE Euronext and the ISE & available in USD, EUR and GBP

10

Volatility Play

• Market Volatility has increased significantly since Lehman’s bankruptcy on Sept 15, 2008• Since then the market* has moved by more than 5% on 18 days compared to 17 days in

the previous 53 years !• US Equity volatility as measured by the VIX index soared to record levels in 2008, double

the 98’ and 02’ spikes.• Russell 1000 outperforms in downswing phase of US business cycle when volatility

and risk aversion is high

*S&P 500

Russell 1000 and 2000 Returns vs. Risk Appetite

-80

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0

20

40

60

80

Dec-02 Sep-03 Jun-04 Mar-05 Dec-05 Sep-06 Jun-07 Mar-08 Dec-08

-220

-170

-120

-70

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30

80

130

180

VIX Index (Inverted)

Russell 2000 Index

Russell 1000 Index

Annual %Annual %

Rising risk appetite

Falling risk appetite

Source: Bloomberg, Russell Investments

Russell 2000 Outperfmance

Russell 1000 Outperfmance

VIX Equity Implied Volatility (Daily, 1990-2009)

0

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70

80

90

Jan-90 Jan-92 Jan-94 Jan-96 Jan-98 Jan-00 Jan-02 Jan-04 Jan-06 Jan-08

Index

Source: Bloomberg

11

Recovery Play

• Russell 2000 outperforms in upswing phase of US business cycle

• A high beta, aggressive portfolio of small cap businesses for those looking to play the next US upswing

• Russell 2000 has significantly outperformed standard US benchmarks

Russell 1000 and 2000 Returns vs. US Growth

-70

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70

90

Dec-02 Sep-03 Jun-04 Mar-05 Dec-05 Sep-06 Jun-07 Mar-08

-12

-7

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3

8

13

US Growth (RHS)

Russell 2000

Russell 1000

Annual %Annual %

12

Key characteristics and benefits of Russell Indexes

• Russell Indexes used by more US institutional investors than all other index providers combined – (63% of US Institutional funds, 98% of small cap mandates)– account for more than half of all US institutional equity assets

benchmarked.

• Deepest and most comprehensive market coverage– Russell Indexes represent over 98% of investable universe.  – Russell 1000, 90% of US equity market and Russell 2000, 8%

• Completely objective – rule-based, transparent methodology creating ideal benchmarks and

trading vehicles. No sampling, membership reflects the actual market.

Source: Nelson Information’s MarketPlace Web database, 30 June 2008

13

Russell Indexes vs. S&P Indexes and others

• Russell 1000 & 2000 benchmarks capture 98% of US equity market

• S&P500 – only 66%

• 56% of all US equity assets in US are benchmarked to Russell

• Russell 1000 and 2000 and the main benchmarks for US equities

• Objective Rules-based methodology vs. subjective committee based methodology for S&P

• MSCI US indexes have limited acceptance in the US market and currently only capture only 0.1% institutional market share

Source: Russell, Data as of May 30, 2008. Russell Indexes charted by total market capitalization

14

Russell 1000 & 2000 - Outperformance

• Significant outperformance in the long term

• Russell 1000 & 2000 have outperformed other benchmarks over 2008

• Russell 1000 & 2000 have outperformed benchmarks over the last 10 years

• Russell 1000/2000 return volatilities compare favourably with other US asset benchmarks

Returns and Volatility – Asset Benchmarks – 1998-2008

Q4 08 1 Yr 3 Yrs 5 Yrs 10 Yrs

Equity IndicesS&P 500 -22% -37% -23% -10% -13% 20%MSCI USA -22% -38% -25% -13% -15% 20%Russell 1000 -22% -38% -24% -10% -10% 20%Russell 2000 -25% -34% -23% -5% 8% 24%MSCI AC World -22% -42% -22% 0% -2% 16%

Cumulative Returns (USD)Volatility

15

Russell 1000 & 2000 – Performance drivers

Russell 1000 Russell 2000

Index composition

Macro environments

Investment performance

Summary

• Largest-cap US stocks, often global

• Highly diversified growth drivers

• Downswing in US growth

• High and rising inflation

• High and rising risk aversion

• Strong BRICs growth

• Low earnings volatility

• Out-performance of US equity benchmarks

• US consumer discretionary, financials

• Concentrated growth stocks

• Upswing in US growth

• Low and stable inflation

• Low and falling risk aversion

• Strong outperformance vs. Russell 1000, US equity benchmarks in US upturns

• Tend to be “best of breed” stocks

• Leverage up earnings in US growth upswings

16

Conclusion

• Russell 1000, most efficient way to play current US equity volatility

• Russell 2000, most efficient way to play US recovery

• Russell 1000, Russell 2000, used by more US institutional investors than

all other index providers combined

• Swap based ETF model ensures tracking errors remains minimal,

most robust model from a risk perspective

• Highly liquid, more market makers than any of other ETFs issuers

17

ETF Securities - Competitive Advantages

The management of ETFS pioneered ETCs

Independent of any mutli-service financial institution/bank ETF Securities only business is creating and managing ETFs and ETCs

Largest Sales and Marketing team dedicated to ETFs in Europe Highly customer focused & support customer business needs

5 ETF Securities products in top 10 traded ETFs on LSEETF Securities has more market makers than any of its competitors

Guaranteed tracking on ETCs Swap based ETFs model ensures tracking errors remains minimal

Synthetic replication most robust equity ETF model from a risk perspectivePhysically backed ETCs carry no credit risk, ETCs are 100% collateralised

Track Record

Focus

Service

Liquidity

Efficiency

Safety

Appendix

- Russell Indexes Compared- ETFS Russell 1000- ETFS Russell 2000 - Market Makers Contacts- ETF Liquidity Model- ETC Platform- ETF, ETC & ETN Comparison

January 2009

19

ETF Securities & Market Maker Contacts• Website: www.etfsecurities.com• LSE: www.londonstockexchange.com/etcs• Deutsche Boerse:www.deutsche-boerse.com/etcs• NYSE-Euronext: www.euronext.com/etcs• Borsa Italiana: www.borsaitaliana.it/etf • Irish Stock Exchange: www.ise.ie/etf

• ETF Securities contact– +44 20 7448 4330 (UK Representative)– info@etfsecurities.com

• Market Maker & Authorised Participant contacts:

Flow Traders +31 (0)207 996 777   UBS +44 (0)207 568 8416   HSBC +44 (0)207 991 5187

Nyenburgh +31 (0)205 213 934   Citigroup +44 (0)207 986 2355   Banca IMI +39 02 7261 2196

Morgan Stanley +44 (0)207 425 6365   LaBranche +44 (0)207 965 4566   Susquehanna +353 (0)1802 8018

UniCredit HVB +44 (0)207 826 6921   Merrill Lynch +44 (0)207 996 1034   Winterflood +44 (0)203 100 0105

Barclays Capital +44 (0)207 773 8500   JP Morgan +44 (0)207 779 3129   Societe Generale +44 (0)207 762 5450

Saen Options BV +31 (0)207 974 000   RBS +44 (0)207 678 9218   Commerzbank +49 (0)69 136 22088

20

ETFs – Liquidity Model

• ETF liquidity is determined by the liquidity of the underlying asset

• ETFs are open-ended – creation/redemption process makes them as liquid as

underlying

• Multiple Authorised Participants (APs) & market makers – ensure pricing is

kept very close to the underlying

• Multiple swap providers who act as APs compete for the business adding an

enhanced liquidity feature

• APs provide the market with liquidity – create and redeem by trading the equity

with the issuer of the shares

• APs and market makers guarantee continuous two way prices on exchange

and will execute larger orders by phone

• TRADED VOLUME IS NOT A RELEVANT MEASURE OF LIQUIDITY!

21

Unique benefits of new ETFs

• Independent Issuer, ETF Securities:

– Multiple swap providers platform, unique in Europe

– Swap providers are interchangeable – reduced operational risk

– All swaps fully collateralised

– Multiple market makers (ETFS has more market makers providing liquidity than any

of other ETF issuer)

• Synthetic Replication:

– More accurate and more stable tracking of index

– Full replication of index return

– Ability to provide unique strategies not possible using in-specie model (Leveraged /

Short / Emerging Markets / Commodities)

– No issuer risk (UCITSIII fund)

22

Third Generation – Multiple Swap Backed ETFs

Primary Market

Secondary Market

Exchange/MarketMakers

ETF

Investors

ETFs

Orders/Prices

Cash Securities

Swap provider2

Swap provider 1

Swap provider3

23

Understanding Russell Indexes - “1 + 2 = 3”

• The Russell 3000This broad cap index of the top 3,000 U.S. stocks by market cap covers 98% of the U.S. equity investable universe

• The Russell 1000The largest 1,000 stocks by market cap, the index comprehensively covers the large cap opportunity set

• The Russell 2000The smallest 2,000 stocks and the primary benchmark for small cap investors in the U.S.

1Source: Russell Investments, Data as of June 2008.

Market capitalization = number of shares outstanding x price per share (e.g., Exxon Mobil has 5,283,694,000 shares outstanding times $88.76/ share gives $469.0 billion market cap). Various segments of the market will perform differently at different times (e.g., in year 2000, Russell 3000 was down 7.5%; Russell Midcap was up 8.3%).The market capitalization ranges used above are absolute breakpoints for new members and do not include capitalization banding. Capitalization banding involves the implementation of a +/-2.5% band around certain breakpoints. For further information, please refer to the Russell Indexes construction and methodology document.

Russell U.S. Indexes total market capitalization1

24

Russell 1000 and 2000 – Compared

• Capitalizations (in USD billions)

1.73

2.87

17.57

1.41 1.83

13.1313.87

10.93 10.65 %

13.68 %

Price/Book Dividend yield P/E Ex-Negearnings

Lt grow thforecast-IBES

EPS grow th 5years

Russell 1000 Russell 2000

Russell 1000 Russell 2000

Average market cap ($-WTD) 72.913 0.887

Median market cap 3.098 0.321

Largest company by market cap 421.797 3.283

Smallest company by market cap 0.02 0.01

• Fundamental characteristics

Source: Russell as at As of December 31, 2008

25

ETFS Russell 1000 Fund (US Large Cap)• ETFS Russell 1000 tracks the Russell 1000 Index which measures the performance of the

large-cap segment of the U.S. equity universe

• The top 5 companies are: Exxon Mobil, At&T Inc., Microsoft, Procter & Gamble, and Johnson & Johnson

• A low beta, highly defensive portfolio of large cap business ideally suited to the current environment of high market uncertainty. The Russell 1000 has also outperformed standard asset benchmarks in upswing phases of the US economy

Sector DistributionRussell 1000 Historical Performance Total Returns Mar-04 - Mar-09, USD

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130

140

150

Mar-04 Sep-04 Mar-05 Sep-05 Mar-06 Sep-06 Mar-07 Sep-07 Mar-08 Sep-08 Mar-09

Index (Mar-04 = 100)

S&P 500

Russell 1000

Financial Services12%

Health Care15%

Producer Durables11%

Materials & Processing

4%

Consumer Discretionary

12%

Technology15%

Utilities8%

Energy13%

Consumer Staples10%

Source: Russell, as at 31-Mar-09

26

Russell 1000 Performance Drivers • Energy and Technology industries the two

most significant growth drivers

• Long run growth tends to be evenly split amongst consumer/services, manufacturing/technology and energy sectors

• More diversified growth base than the Russell 2000

• Russell 1000 components are less cyclical than Russell 2000

• Financial and Consumer components have been a larger drag on overall performance than previous downturn

•

Russell 1000 - Return Contribution by Industry

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Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08

Other

Industrials

Health

Utilities

Consumer

Financials

Energy

Technology

Annual Growth (%)

Source: Russell Investments

Russell 1000 Return Contribution by Sector

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Dec-02 Sep-03 Jun-04 Mar-05 Dec-05 Sep-06 Jun-07 Mar-08 Dec-08

Other

Industrials and Technology

Energy and Utilities

Consumer and Services

Source: Russell Investments

Annual %

27

ETFS Russell 2000 Fund (US Small Cap)• ETFS Russell 2000 tracks the Russell 2000 Index which measures the performance of the

small-cap segment of the U.S. equity universe

• The top 5 companies are: Alexion Pharmaceuticals, OSI Pharmaceuticals, Myriad Genetics, Railcorp Holdings and Sybase.

• A high beta, aggressive portfolio of small cap businesses for those looking to capitalise on the next US upswing. The Russell 2000 has significantly outperformed standard asset benchmarks in the US

Sector DistributionRussell 2000 Historical Performance Total Returns Mar-04 - Mar-09, USD

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130

140

150

Mar-04 Sep-04 Mar-05 Sep-05 Mar-06 Sep-06 Mar-07 Sep-07 Mar-08 Sep-08 Mar-09

Index (Mar-04 = 100)

S&P 500

Russell 2000

Materials & Processing

6%Health Care

16%

Energy4%

Financial Services20%

Utilities6%

Consumer Staples4%

Consumer Discretionary

14%

Producer Durables14%

Technology16%

Source: Russell, as at 31-Mar-09

28

Russell 2000 Performance Drivers • Financials and consumer industries the two most

significant growth drivers.

• LR growth tends to be driven by Consumer/Services and Industrials/Technology sectors.

• More concentrated growth base than the Russell 1000.

• More cyclical vs. structural components to the return base.

• More broad-based industry contributions to recent return drops: flight to large-cap safety?

Russell 2000 - Return Contribution by Industry

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Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08

Other

Utilities

Energy

Industrials

Health

Technology

Consumer

Financials

Annual Growth (%)

Source: Russell Investments

Russell 2000 Return Contribution by Sector

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Dec-02 Sep-03 Jun-04 Mar-05 Dec-05 Sep-06 Jun-07 Mar-08 Dec-08

Other

Energy and Utilities

Industrials and Technology

Consumer and Services

Annual %

Source: Russell Investments

29

What are Exchange Traded Commodities (ETCs)?

• Similarities to ETFs:

– Open-ended securities

– Track the underlying commodity price or commodity index

– Asset backed – Physical bullion or Commodity Contracts (Swaps)

– Buy & hold. No management or maintenance required

– Listed on stock exchanges, trade & settle like stocks

– Low cost – MERs 39 bps to 98 bps

– Eligible investments for UCITS

– Trade free of stamp duty

– Long, Short and Leveraged exposures available

• Differences from ETFs:

– ETCs are securities and not funds

30

ETFS Platform

Listing: London, Frankfurt, Amsterdam, Paris and Milan*Shariah compliant precious metal ETC platform

Diversified Broad Energy Agriculture Livestock

ETFS All Commodities £ DJ-AIGCISM ETFS Carbon ETFS Coffee ETFS Lean Hogs

ETFS All Commodities DJ-AIGCISM ETFS Carbon £ ETFS Corn ETFS Live Cattle

ETFS Ex-Energy DJ-AIGCISM ETFS Brent 1mth ETFS Cotton ETFS Livestock DJ-AIGCISM

ETFS Forward All Commodities DJ-AIGCI-F3SM ETFS Brent 1mth £ ETFS Soybean Oil ETFS Forward Lean Hogs

ETFS Forward Ex-Energy DJ-AIGCI-F3SM ETFS Brent 1yr ETFS Soybeans ETFS Forward Live Cattle

ETFS Leveraged All Commodities DJ-AIGCISM ETFS Brent 2yr ETFS Sugar ETFS Forward Livestock DJ-AIGCI-F3SM

ETFS Leveraged Ex-Energy DJ-AIGCISM ETFS Brent 3yr ETFS Wheat ETFS Leveraged Lean Hogs

ETFS Short All Commodities DJ-AIGCISM ETFS Crude Oil ETFS Agriculture £ DJ-AIGCISM ETFS Leveraged Live Cattle

ETFS Short Ex-Energy DJ-AIGCISM ETFS Gasoline ETFS Agriculture DJ-AIGCISM ETFS Leveraged Livestock DJ-AIGCISM

ETFS Heating Oil ETFS Grains £ DJ-AIGCISM ETFS Short Lean Hogs

Industrial Metals ETFS Natural Gas ETFS Grains DJ-AIGCISM ETFS Short Live Cattle

ETFS Aluminium ETFS Natural Gas £ ETFS Softs DJ-AIGCISM ETFS Short Livestock DJ-AIGCISM

ETFS Copper ETFS WTI 1yr ETFS Forward Agriculture DJ-AIGCI-F3SM

ETFS Nickel ETFS WTI 2mth ETFS Forward Grains DJ-AIGCI-F3SM Precious Metals

ETFS Zinc ETFS WTI 2mth £ ETFS Forward Softs DJ-AIGCI-F3SM ETFS GBS

ETFS Industrial Metals DJ-AIGCISM ETFS WTI 2yr ETFS Leveraged Agriculture DJ-AIGCISM ETFS GBS £

ETFS Forward Industrial Metals DJ-AIGCI-F3SM ETFS WTI 3yr ETFS Leveraged Cocoa ETFS Gold

ETFS Leveraged Aluminium ETFS Energy DJ-AIGCISM ETFS Leveraged Coffee ETFS Gold £

ETFS Leveraged Copper ETFS Petroleum DJ-AIGCISM ETFS Leveraged Corn ETFS Silver

ETFS Leveraged Lead ETFS Forward Energy DJ-AIGCI-F3SM ETFS Leveraged Cotton ETFS Precious Metals DJ-AIGCISM

ETFS Leveraged Nickel ETFS Forward Heating Oil ETFS Leveraged Grains DJ-AIGCISM ETFS Leveraged Gold

ETFS Leveraged Tin ETFS Forward Natural Gas ETFS Leveraged Softs DJ-AIGCISM ETFS Leveraged Platinum

ETFS Leveraged Zinc ETFS Forward Petroleum DJ-AIGCI-F3SM ETFS Leveraged Soybean Oil ETFS Leveraged Silver

ETFS Leveraged Industrial Metal DJ-AIGCISM ETFS Leveraged Crude Oil ETFS Leveraged Soybeans ETFS Leveraged Precious Metals DJ-AIGCISM

ETFS Short Aluminium ETFS Leveraged Energy DJ-AIGCISM ETFS Leveraged Sugar ETFS Physical Gold*

ETFS Short Copper ETFS Leveraged Gasoline ETFS Leveraged Wheat ETFS Physical Gold £*

ETFS Short Lead ETFS Leveraged Heating Oil ETFS Short Agriculture DJ-AIGCISM ETFS Physical Palladium*

ETFS Short Nickel ETFS Leveraged Natural Gas ETFS Short Cocoa ETFS Physical Platinum*

ETFS Short Tin ETFS Leveraged Petroleum DJ-AIGCISM ETFS Short Coffee ETFS Physical PM Basket*

ETFS Short Zinc ETFS Short Crude Oil ETFS Short Corn ETFS Physical PM Basket £*

ETFS Short Industrial Metals DJ-AIGCISM ETFS Short Energy DJ-AIGCISM ETFS Short Cotton ETFS Physical Silver*

ETFS Short Gasoline ETFS Short Grains DJ-AIGCISM ETFS Physical Silver £*

ETFS Short Heating Oil ETFS Short Softs DJ-AIGCISM ETFS Short Gold

ETFS Short Natural Gas ETFS Short Soybean Oil ETFS Short Platinum

ETFS Short Petroleum DJ-AIGCISM ETFS Short Soybeans ETFS Short Silver

ETFS Short Sugar ETFS Short Precious Metals DJ-AIGCISM

ETFS Short Wheat

31

ETF, ETC & ETN Comparison

PHYSICALLY-BACKED ETCs

SWAP-BASED ETCsIN-SPECIE-BASED

ETFsSWAP-BASED ETFs ETNs

STRUCTURE Asset-backed Security Asset-backed Security Fund Fund Unsecured Note

UNDERLYING HOLDINGS

Physical Allocated Bullion (audited + published bars)

Swap contract / collateralised or non

Equities & cash (not applicable for commodities)

Index swap plus a basket of non-index securities

Bank balance sheet

ISSUER RISKNo, assets ring-fenced by trustee structure

No, assets ring-fenced by trustee structure

No, assets ring-fenced by fund structure

No, assets ring-fenced by fund structure

Yes, no trustee or ring - fencing

COUNTEPARTY / CREDIT RISK

No 100% allocated bullion

No for collateralised Ucollateralised, exposure to swap counterparty

NoYes. Limited to 10% under UCITS

Yes, bears full exposure to credit worthiness of note issuer

OTHER COUNTEPARTY RISK No No

•Securities lending, dividend enhancement activity and any derivative exposures•Cash management with linked notes•Rebalancing risk (tracking & counterparty)

No No

Tracking Error Management fees Management feesManagement fees,Fund transaction costs,Portfolio drift

Management fees Management fees

EXCHANGE LISTED Yes Yes Yes Yes YesUCITS FUND No No Yes Yes NoUCITS ELIGIBLE Yes Yes Yes Yes No

32

Risk Warnings

Risk Warnings: ETFS Fund Company public limited company (the “Company”) is an open-ended investment company with variable capital having segregated liability between its sub-funds (each a “Fund”) and is organised under the laws of Ireland as a public limited company. The Company was authorised by the Financial Regulator as a UCITS pursuant to the European Communities (Undertaking for Collective Investment in Transferable Securities) Regulations, 2003 and shall issue a separate class of shares (the “Shares”) representing each Fund. Further information in relation to a particular Fund can be found in the latest prospectus of the Company which should be read in conjunction with the relevant fund supplement (together the “Prospectus”).

An investment in Shares of a particular Fund may or may not be suitable for a particular investor. The price of Shares may go up or down and an investor may not get back the amount invested. Historical performance is not a guarantee for future performance. The Shares will be priced in the base currency of the relevant Fund and so the value of the investment in other currencies will be affected by exchange rate movements. To the extent Shares are traded in other currencies, their value may also be affected by exchange rate movements.

Restricted Investors: The information in this document is designed solely for use in the Republic of Ireland and the Netherlands and complies with the regulatory requirements of these jurisdictions only.

The distribution of the Prospectus and this document and the offering, sale and delivery of Shares in other jurisdictions may be restricted by law. In particular please see the section below headed “Important information for persons resident in particular jurisdictions.”

This document is furnished for the private information of the recipient and must not be copied, given or shown to any other person. Any subscription for Shares should be made on the basis of the Prospectus.

Shares will not be registered under the United States Securities Act of 1933 or qualified under any applicable state securities statutes. The Company will not be registered as investment companies under the US Investment Company Act of 1940.

33

Restricted Investors and DisclaimerDisclaimer: Any investment in Shares carries with it certain risks, including those risks set out in the Prospectus. You should obtain your own independent financial, taxation and legal advice before making any

decisions about any investment in Shares. This information is not an offer of Shares and should not be used as the basis for any investment decision. The Shares of each Fund have been listed on the Irish Stock

Exchange and the Euronext Amsterdam and may be purchased on such exchanges. This information is issued by the Company and does not constitute financial product advice. The Company does not guarantethe

performance of Shares of a Fund and does not accept any responsibility for any omissions or inaccuracies in this document, which it believes to be correct at the time of issue.

Important information for persons resident in particular jurisdictions

Important information for persons resident in Austria:

Any information provided in this document does not constitute an offer to the public or an invitation to the public to make an offer for the acquisition of Shares in the Funds of the Company by Austrian investors. The

Shares are exclusively available to a limited number (less than 100) of individually selected investors in Austria. Therefore, the Prospectus is not a prospectus pursuant to the Austrian Investment Funds Act. This

document, the Prospectus and other materials relating to Shares are strictly confidential and may not be distributed to any person or entity other than the recipients hereof. This document as well as any information

contained herein may not be supplied to the public in Austria or used in connection with any offer for subscription of Shares to the public in Austria. The Shares must not be offered by public advertisement or in any

similar manner in Austria.

Important information for persons resident in Luxembourg:

This document and any offering of Shares does not and is not intended to constitute a public offer of Shares in the Grand Duchy of Luxembourg and as a consequence no notification has been made to the

Luxembourg regulators. Therefore, Shares may not be offered, sold or otherwise marketed in the Grand Duchy of Luxembourg in circumstances that constitute a public offer under Luxembourg law. This document

will not be used for a public offer in the Grand Duchy of Luxembourg of the Shares represented thereby and does not constitute a public offer to anyone in the Grand Duchy of Luxembourg to purchase the Shares.

Important information for persons resident in Spain:

The sale of the Shares in the Funds of the Company which this document refers to have not been registered with the Spanish National Securities Market Commission (“Comision Nacional del Mercado de Valores”)

pursuant to Spanish laws and regulations and do not form part of any public offer of such Shares in Spain. Accordingly, no Shares in the Funds of the Company may be or are presently intended to be publicly

offered, marketed or promoted, nor any public offer in respect thereof made, in Spain, nor may this document or any other offering materials relating to the offer of Shares in Funds be distributed, in the Kingdom of

Spain, by ETF Securities Limited or any other person on their behalf, except in circumstances which do not constitute a public offering and marketing in Spain within the meaning of Spanish laws and in compliance

with all legal and regulatory requirements in relation thereto. This document and any other materials relating to Shares are strictly confidential and may not be distributed to any person or any entity other than its

recipients.

Important information for persons resident in Switzerland:

The Company has not been and will not be authorised by or registered with the Swiss Federal Banking Commission as a foreign collective investment scheme pursuant to Article 120 of the Swiss Federal Act on

Collective Investment Schemes of June 23, 2006. Accordingly, the Shares may not be offered or distributed to the public in or from Switzerland, unless such offer or distribution is addressed to Swiss investors

without any public offering in accordance with the relevant practice of the Swiss Federal Banking Commission. This document may be used in a private placement only and is personal to the addressee. It does not

constitute an offer to any other person and may only be used by those persons to whom it has been handed out in connection with the offer described herein. It may not be used in connection with any other offer

and may neither be copied, used by, distributed or made available to any other person.

Important information for persons resident in United Kingdom:

The distribution in the United Kingdom of this document and any other marketing materials relating to the Company (A) if effected by a person who is not an authorised person under FSMA, is being addressed to, or

directed at, only the following persons: (i) persons who are "Investment Professionals" as defined in Article 19(5) of the FSMA (Financial Promotion) Order 2005 (the "Financial Promotion Order") and (ii) persons

falling within any of the categories of persons described in Article 49 ("High net worth companies, unincorporated associations etc") of the Financial Promotion Order and (iii) any other person to whom it may

otherwise lawfully be distributed in accordance with the Financial Promotion Order and (B) if effected by a person who is an authorised person under FSMA, is being addressed to, or directed at, only the following

persons: (i) persons falling within one of the categories of "Investment Professionals" as defined in Article 14(5) of the FSMA (Promotion of Collective Investment Schemes) (Exemption) Order 2001 (the "Promotion

of CISs Order"), (ii) persons falling within any categories of persons described in Article 22 `("High net worth companies, unincorporated associations etc") of the Promotion of CISs Order and (iii) any other person to

whom it may otherwise lawfully be distributed in accordance with the Promotion of CISs Order. Persons of any other description in the United Kingdom may not receive and should not act or rely on this document or

any other marketing materials relating to Company.

Potential investors in the United Kingdom are advised that all, or most, of the protections afforded by the United Kingdom regulatory system will not apply to an investment in Shares and that compensation will not be

available under the United Kingdom Financial Services Compensation Scheme.Regulated by the Jersey Financial Services Commission.