Nepal To Launch New Gold ETF
Source: http://www.indexuniverse.com/sections/newsinfocus/4791-nepal-to-launch-new-gold-etf.html?Itemid=3&utm_source=straightstocks.com&utm_medium=sidebar&utm_campaign=rssPosted on Thursday, November 6th, 2008 | In Exchange Traded Funds
The SPDR Gold Shares (NYSE: GLD) is by far the most popular gold ETF, with more than $18 billion in assets.
Nepal features eight of the 10 highest mountains in the world, including Mount Everest. And now, the Himalayan nation is about to have an exchange-traded fund.
Nepal-based Ace Development Bank says it plans to introduce a gold ETF for Nepal’s financial market on Sunday.
The fund will buy gold directly, according to details released announcing its introduction. On the first day of trading, the bank plans to sell 5 kilograms of gold linked to the ETFs. According to its sponsors, the ETF represents the cheapest way for investors to gain exposure to physical gold bullion other than buying it directly themselves.
Also, the ETF will begin trading on the bank’s trading floor through it gold purchases. However, the secondary markets for investors will come through the Nepal Stock Exchange and the Commodities and Metal Exchange Nepal.
Ace Development Bank is positioning the gold ETF as an inflation hedge and is playing up gold’s popularity with investors worldwide in the launch. The SPDR Gold Shares (NYSE: GLD) is by far the most popular gold ETF, with more than $18 billion in assets.
Trading will start Sunday, and is expected to be available every day except Saturday, during banking hours.
Southeast Asia has seen a rapid rise in the total number of ETFs. However, while ETF listings increase in markets including Singapore, total assets have dropped in Asia, from 2007 levels. In Nepal, much of the country’s population may be far from ready to invest in an ETF.
Approximately 30% of the population live below the poverty line, and 24% live on less than $1 dollar per day, according to United Nations data.
Finance represents 2.75% of the Himalayan nation’s economy, compared with Agriculture, which is over 32%. Maybe an agricultural ETF with a concentration in sheep wool will be next.
According to the Barclays Global Investors’ ETF research implementation strategy group, the Asian market leaders, in terms of ETF listings and assets at Q3 end were:
|
Market |
Total Listings (9/30) |
Assets ($BLN) (9/30) |
|
Japan |
61 |
27.5 |
|
South Korea |
35 |
3.14 |
|
Singapore
|
18 (24, as of 11/4) |
1.10 |
|
Hong Kong |
23 |
13.2 |
|
Australia |
18 |
1.11 |
|
Taiwan |
11 |
1.83 |
|
India |
11 |
1.62 |
|
New Zealand |
6 |
0.35 |
|
China |
5 |
2.67 |
|
Malaysia
|
3 |
0.30 |
|
Thailand |
2 |
0.10 |
|
Indonesia |
1 |
0.00 |
Last 5 posts by IndexUniverse Staff
- NASDAQ Launches Index Tracking TARP Companies - January 8th, 2009
- Dec. 8: The Best ETF Articles In The National Media - January 8th, 2009
- Jan. 7: The Best ETF Articles In The National Media - January 7th, 2009
- DJ-AIG Commodities Index Changing Weightings - January 6th, 2009
- Jan. 6: The Best ETF Articles In The National Media - January 6th, 2009
 About IndexUniverse Staff (http://indexuniverse.com)
IndexUniverse encompasses the world of indexing and beyond. Our website and related subsites cover product and market developments related to index funds, exchange-traded funds (ETFs), index derivatives (futures / options / swaps), and the sophisticated investment strategies which use these financial tools. Our goal is to provide the industry's best news, columns, research, and features about the dynamic field of index-based investing and trading. Industry professionals, individual investors, business/finance students and academic researchers will find various features targeting their interests and needs. We also provide valuable tools and data to assess markets and investment products, and specialized discussion boards for our registered members to exchange cutting-edge ideas and market views. We aim to be educational, thought-provoking, and most importantly, rigorously independent in our perspective. The development of IndexUniverse was a global effort, originally led by Steven Schoenfeld and Jim Wiandt, supported by John Spence and a diverse team in the U.S., Europe and Latin America, and enhanced by editorial contributors from around the world. The site is now managed solely by Jim Wiandt and the global Index Publications LLC team. The site was originally started by Steven as a data and information complement to his book, Active Index Investing, published by Wiley Finance in July 2004. As he recognized the need and potential for such a resource, in August 2003, Steven partnered with Jim, who as editor of The Journal of Indexes similarly recognized the industry's need for timely, useful and independent information on products and markets. |
No recommendations, either expressed or implied, are being made to buy, sell, hold or short any of the mentioned stocks. No legal, tax or accounting advice is expressed or implied. Always contact your attorney, CPA, or tax advisor before acting on any legal or tax issues. StraightStocks.com is not responsible for the content, products, or services of any of the advertisers on this site. StraightStocks.com receives compensation from advertisers on this blog. Services and products referred to herein are trademarks, registered trademarks, servicemarks, and/or registered servicemarks of their respective trademark or servicemark owners.