BetaShares launches Australia’s first hedged gold ETF


•  Investors can now access pure exposure to gold as easily as buying any share
•  ETF physically backed by gold bullion
•  ETF currency hedged removing currency risk from gold price ..

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            BetaShares Capital Limited (BetaShares) has listed Australia’s  first Australian dollar (AUD) hedged gold bullion ETF on the Australian Securities Exchange  (ASX), substantially removing the impact of movements in the AUD/USD exchange rate which  have, in recent times, negatively impacted investors’ returns from gold ETFs.  

            Physical gold has delivered exceptional returns over the past decade as investors flocked to  safe haven assets in volatile markets.  Backed by physical gold bullion and trading under the  ASX Code ‘QAU’, BetaShares Gold Bullion ETF (A$ Hedged), gives investors a simple, low-cost, liquid and efficient way to access the precious metal without the currency risk.   

            Drew Corbett, Head of Investment Strategy & Distribution at BetaShares said in addition to  providing strong returns in down markets, gold had proven resilient in the recent share  market recovery. 

            “In the last 2 years to April 2011, the S&P/ASX 200 delivered an 18% p.a. return while the  gold price in USD increased by 33% p.a. In addition, over the last 10 years, hedged gold  returned almost 5% p.a. more than unhedged gold”, he said.

            An ETF provides a far simpler, more transparent way for investors to access the price of gold  than alternatives. Attempting to obtain gold exposure via investing in gold mining companies,  accessing futures markets and direct gold ownership, all expose investors to other  complexities and risks. 

            “Purchasing gold companies as a means to access the gold price introduces company and  stock market risk, the futures market can be complicated and difficult to access and direct  ownership involves substantial insurance and storage costs.  A hedged gold ETF is the most  pure and simple way of gaining exposure to movements in the price of gold,” Mr Corbett  said.

            In addition, many investors are concerned that large and growing budget deficits around the  world may result in a resurgence in inflation. Gold has traditionally been used by investors to protect against the risk of inflation, and many investors are accordingly adding additional gold  exposure as part of their investment strategies.

            In addition to the potential for strong investment returns and its ability to act as a hedge  against inflation, gold’s low correlation with other asset classes makes it a strong addition to  a diversified portfolio for investors. 

             “Although we saw most other asset classes become highly correlated during the recent  global financial crisis, gold performed strongly,” said Mr Corbett.

            Quelle: ETFWorld – BetaShares