Global X launches first-ever currency hedged Gold | Australian Markets

Exchange traded funds (ETF) specialist Global X has expanded its steady of bodily gold-pegged EFT merchandise, touting its newly launched ETF because the “lowest-cost fund of its kind in Australia”.

The Global X Gold Bullion (Currency Hedged) ETF (GHLD) tracks the efficiency of gold bullion price currency-hedged into Australian {dollars} – a distinctive characteristic amongst its bodily gold-tracking product suite in Australia.

The GHLD joins Global X’s current suite of gold-backed merchandise accessible to Australian traders, together with its flagship Global X Physical Gold (GOLD) fund, recognised because the world’s first gold-backed exchange-traded product, and the more just lately launched Global X Gold Bullion ETF (GXLD).

Global X touts its newly launched GHLD because the “lowest-cost fund of its kind in Australia”, attracting a management price of 0.35% every year. Its complementary GOLD takes a 0.40% cut, whereas the longer-term investment-focused GXLD, promoted by Global X because the “lowest cost physically backed gold exchange traded product in the market”, attracts a price of 0.15%.

The GHLD, not like Global X’s different bodily gold-pegged merchandise, is currency hedged, making certain investor positive factors will not be eroded by a rising AUD.

Global X notes that currency hedging has turn into a “top of mind” precedence for a lot of of its shoppers, offering a hedge in opposition to the diverging coverage charges of the US Federal Reserve and the Reserve Bank of Australia.

“Investors want to stay exposed to gold during this time of volatility, but at the same time, they are increasingly concerned that the Australian dollar could start to rise,” stated Global X investment analyst Justin Lin.

“GHLD offers an effective solution to that problem, allowing them to stay invested and also hedge against currency risk.”

Recognising gold’s confirmed reliability as a portfolio hedge – a “cornerstone of many Australian investment portfolios” – Lin added that the asset stays for a lot of traders a “reliable asset for capital preservation and portfolio diversification”.

While the gold price is at present trading at an all-time (pre-inflation adjusted) high of US$3,115 (U$4,939) per ounce, up more than 44% within the yr so far, Global predicts “room for further gains”, as equity markets brace for additional volatility.

“Adjusted for inflation, gold’s all-time high really stands at US$3,459, set in 1980 – that means its present valuation might nonetheless be effectively within cause.

“If equity markets continue to experience turbulence, there is a possibility we could see the gold price rise to US$3,200.”

GHLD expands Global X’s ETF product suite to 42, with the company overseeing more than $9.5 billion in property underneath management in Australia.