ETF Securities has announced that its ETFS Physical Gold (GOLD) fund has been upgraded by research house, Zenith Investments Partners, to “recommended” due to the fund’s uniqueness.
Zenith praised the fund for the fact that its assets were physically backed by gold bullion while its currency exposure remained unhedged.
Zenith also believed that GOLD provided a “true to label” exposure to gold with the liquidity of an ASX listing.
GOLD was designed to deliver a return equivalent to the movements in the gold spot price before management costs, the firm said.
Following this, each unit provided investors with an attached entitlement to the relevant amount of physical bullion, which was held in a separate trust in the London vault of fund’s custodian, HSBC.
ETF Securities’ chief executive, Kris Walesby, described the upgrade as a “further solid recognition” for one of the firm’s flagship products.
“GOLD is a simple and low-cost way of owning and trading physical gold,” Walesby said.
“And the precious metal should be a fundamental element of any properly diversified investment portfolio.
“As Zenith points out, this is an efficient way to gain that exposure without any related transport, storage or insurance costs.”
