A New ETF To Play Gold’s Appeal

As the appeal for commodities, in particularly, gold continues to rise, ETF provider, ETF Securities recently announced another first-to-market ETF, the ETFS Physical Asian Gold Shares (AGOL).

AGOL is the first U.S. precious metals product to be vaulted in Asia as its custody will store all of its physical gold bars in secure London Bullion Market Association approved vaults in Singapore, as stated in its prospectus.  From an investment perspective, the objective of AGOL is to reflect the price performance of reflect the price performance of physical gold, less trust expenses, while carrying an expense ratio of 0.39%. 

The launch of AGOL couldn’t come at a better time as increased demand for gold and investment vehicles that enable one to gain access to gold continues to rise.   The precious metals safe haven characteristics during times of uncertainty, its ability to give investors the capability to hedge against inflation and its uses as a method do diversify assets are likely to keep it a “hot commodity”.  Furthermore, as demand for gold continues to rise, from a consumer, investor and governmental standpoint, imbalances in supply and demand could further push up prices as that production and extraction of the metal is not easy.

ETF Securities is no stranger to the physically backed precious metal ETF space, as that the provider’s ETFS Physical Swiss Gold Shares (SGOL), ETFS Physical Silver Shares (SIVR), ETFS Physical Palladium Shares (PALL), ETFS Physical Platinum Shares (PPLT), ETFS Physical Precious Metals Basket Shares (GLTR) and ETFS Physical White Metal Basket Shares (WITE) have enabled the provider to surpass $3.5 Billion in US assets under management in a relatively short time span.

Disclosure: No Positions

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About etftutor
Kevin Grewal is the founder, editor and publisher of ETF Tutor and serves as the editor at www.SmartStops.net, where he focuses on mitigating risk and implementing exit strategies to preserve equity. Additionally, he is the editor at The ETF Institute, which is the only independent organization providing financial professionals with certification, education, and training pertaining to exchange-traded funds (ETFs). Prior to this, Grewal was a quantitative analyst at a small hedge fund where he constructed portfolios dealing with stock lending, exchange-traded funds, arbitrage mechanisms and alternative investments. He is an expert at dealing with ETFs and holds a bachelor's degree from the University of California along with a MBA from the California State University, Fullerton. He is contributing author on The Street - his articles can also be found published on various sites including Yahoo! Finance, The Globe and Mail , Daily Markets, MSN Money, Seeking Alpha, Fidelity Investments, Traders Library, and Minyanville. Prior to this, Mr. Grewal was an analyst at a small hedge fund where he constructed portfolios dealing with stock lending, exchange-traded funds, arbitrage mechanisms and alternative investments. He is an expert at dealing with ETFs and holds

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