The asset manager said the Lyxor ETF MSCI ACWI Gold product gives investors an alternative way to play the gold theme instead of investing in the yellow metal itself.
Gold has become increasingly popular with investors as they use the commodity to diversify their portfolios and gain a degree of protection against inflation. It is also a useful hedge in times of market stress, thanks to its safe haven status.
Lyxor said: “The third round of quantitative easing and the accommodative monetary policies of the major central banks have all helped to bolster gold prices. During QE1 and QE2, gold prices increased by 36% and 21% respectively.
“Since 2008, gold mining stocks have been lagging far behind actual gold spot prices. An increase in gold prices combined with a more favourable environment for equities might lead to a recovery in gold miners’ equity prices.”
The asset manager added that gold mining equities offer investors long-term equity growth through dividend income and capital appreciation, which investment in the commodity does not provide, while retaining some of gold’s diversification benefits.
