New Products

ETF Securities To Launch Gold Products In Sterling, Euros

Tom Burroughes Group Editor London 20 March 2013

ETF Securities To Launch Gold Products In Sterling, Euros

ETF Securities, the exchange-traded commodities firm, is to launch a gold-related product denominated in sterling and the euro on the London and Frankfurt stock markets today.

The products are the ETFS GBP Daily Hedged Physical Gold and ETFS EUR Daily Hedged Physical Gold vehicles. They are, ETF Securities said, designed to offer “an inbuilt daily currency-hedging mechanism, mitigating the effect of currency volatility in investors’ portfolios”.

The launch comes at a time when, despite some falls, investor demand for gold-based products remains robust amid concerns about inflation, for example.

ETF Securities said it listed the world’s first exchange-traded gold product in 2003; today, over $18 billion of the firm’s assets reside in products that track the spot price of gold.

The new products track the performance of the Morgan Stanley Long Gold British Pound Hedged Index and the Morgan Stanley Long Gold Euro Hedged Index, respectively.

The firm said it hopes to shortly make ETFS EUR Daily Hedged Physical Gold available on the Italian stock market.

“There are many sterling and euro-based investors who wish to hedge out currency risk. As witnessed following the recent G20 meeting and various central bank announcements, monetary policy has the potential to cause significant currency movements,” said Matt Johnson, head of distribution, EMEA, at ETF Securities.

Register for WealthBriefing today

Gain access to regular and exclusive research on the global wealth management sector along with the opportunity to attend industry events such as exclusive invites to Breakfast Briefings and Summits in the major wealth management centres and industry leading awards programmes