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FinEx has announced the launch of the FinEx Physically Held Gold ETF (FXGD), the first fully regulated gold exchange-traded fund in the European Union.
The ETF, which has been listed on the Irish Stock Exchange and cross-listed on the Moscow Exchange, is backed by physically held gold bullion in vaults in London.
It tracks the price of gold calculated using the London Gold Fixing Price set in US dollars on each trading day.
Simon Luhr, Managing Partner and CEO, FinEx Capital Management, said: “Our Gold ETF is the first regulated Irish gold fund to list as an ETF. In Russia, cross-listed investment products have to be fully regulated, so we have launched this product as an ETF rather than an exchange-traded commodity (ETC) or note. Investing in gold via an ETF is a secure and safe way to gain exposure to this commodity, and being backed physically provides reassurance to investors.”
Evgeny Kovalishin, President and CEO, FinEx Plus, FinEx’s Russian partner, added: “Since we launched on the Moscow Exchange in April we have received many inquiries from market participants and seen tremendous interest for ETFs as an investment tool. During the summer our Eurobond ETF achieved the highest trading volume of any open-ended fund traded on the exchange. And this is just the beginning. Our aim is to offer a comprehensive range of ETFs giving investors access to all the main asset classes with investment vehicles renowned worldwide for their qualities of value for money, convenience, efficiency and diversification.”
Commenting on the outlook for gold, Luhr said: “Our research shows there is substantial appetite among investors for gold now and going forwards. We anticipate significant demand for this product, especially in Russia.”
According to research conducted by FinEx in September, 42% of institutional investors believe that the price of gold will increase over the next one to three years, including 4% who anticipate a dramatic rise. Only 14.5% anticipate a fall in value. The findings reveal that institutional investors believe the two main drivers of a rise in the value of gold will be fear of another financial shock and geopolitical uncertainty.
Nearly half (49%) of institutional investors said that ETFs/ETPs were their investment vehicle of choice for investing in gold, versus 16.5% for pooled gold accounts, 4.1% for un-hedged gold stocks and 1.0% for both bullion and futures. Cost efficiency, liquidity and transparency were cited as reasons for this preference.
The fund has a total expense ratio of 0.45%. Shares in the ETF are available in both US dollars and Rouble.