New Gold ETF Takes On GLD, IAU
Source: http://www.indexuniverse.com/sections/newsinfocus/6510-new-gold-etf-takes-on-gld-iau.html?Itemid=3&utm_source=straightstocks.com&utm_medium=sidebar&utm_campaign=rssPosted on Wednesday, September 9th, 2009 | In Exchange Traded Funds
London-based ETF Securities launches new gold ETF, its second U.S. product.
Just as gold is showing its strongest performance in a year, exchange-traded fund provider ETF Securities is set to launch its first bullion-backed gold fund. The ETFS Physical Swiss Gold Shares, backed by one-tenth of an ounce of Swiss-stored physical bullion per share, is set to begin trading on Wednesday through the NYSEArca exchange under the ticker SGOL.
ETFS Physical Swiss Gold Shares will go head-to-head in competition with existing bullion-backed ETFs such as SPDR Gold Trust (NYSEArca: GLD) and iShares COMEX Gold Trust (NYSEArca: IAU), both of which have hit 52-week highs this week on a surging gold price.
Gold ETF holdings have risen 42 percent, or 16 million ounces year-to-date. Bullion-backed ETFs hold 54.23 million ounces of gold, more than many central banks and around the levels of last year’s total production amount. (See Wall Street Journal story here.)
The ETFS Physical Swiss Gold Shares is ETF Securities’ second commodity-based fund to launch in the past three months. In July, the provider launched ETFS Silver Trust (NYSEArca: SIVR), which has risen 18% since then. The new ETF is the firm’s third to date, following London Stock Exchange Traded Gold Bullion Securities (LSE: GBS.L) and ETFS Physical Gold (LSE: PHAU.L).
“We think the U.S. equity ETF market is very competitive and arguably very saturated. But we feel that the U.S. commodities marketplace is under-served,” said William Rhind, head of London-based ETF Securities’ U.S. marketing unit in a recent interview with IndexUniverse.com. (See story here.)
In Asia trading Wednesday, gold was selling for around $1,002 an-ounce in Singapore. However, technical traders were advising hedge funds to use the high gold price as an opportunity to sell the commodity short, for a quick dip to around $940 an ounce. (See story here.)
Gold ETFs were volatile in Tuesday trading, rising initially and falling back to end the day around 1.1 percent lower.
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 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. |
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