The ETFS GBP Daily Hedge Physical Gold ETF has been launched on the LSE and the ETFS EUR Daily Hedged Physical Gold ETF will be launched on the 21st March on the Deutsche Boerse. The firm may also launch the same euro hedged product on the Borsa Italiana in the future, it said.
The products offer an inbuilt daily currency-hedging mechanism, mitigating the effect of currency volatility in investors’ portfolios by reducing exposure to the US dollar. The products track the performance of the Morgan Stanley Long Gold British Pound Hedged Index and the Morgan Stanley Long Gold Euro Hedged Index.
ETF Securities, which launched the world’s first exchange-tranded gold product in 2003, has over $18bn in assets tracking the spot price of gold. According to the firm, it attracted $2.5bn in net new assets into physically backed gold products in 2012.
Matt Johnson, head of distribution, EMEA, ETF Securities, said: “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."
