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WisdomTree unveils low-cost gold ETP amid expectations of future demand


backed by 100% physically allocated gold bars stored in secure London vaults

backed by 100% physically allocated gold bars stored in secure London vaults

WisdomTree has listed a low-cost physically-backed gold exchange traded product (ETP) on the London Stock Exchange as demand for gold is expected to continue increasing.

The new ETP, WisdomTree Core Physical Gold ETP (WGLD), has a management expense ratio of 0.15% and is designed to track the gold spot price.

It is backed by 100% physically allocated gold bars stored in secure London vaults by the custodian on behalf of WisdomTree.

According to the provider, the ETP will aim to allocate to responsibly sourced gold bullion to promote high ethical standards for the ETP.

Going for gold: An opportunity for ‘intelligent speculation’

Alexis Marinof, head of WisdomTree Europe, said: “WGLD complements our extensive range of gold ETPs, including the most comprehensive physical gold ETP range in Europe – so investors can choose the exposure that’s absolutely right for them.

“WGLD is backed by physical gold stored in vaults located in London, the world’s most liquid gold market, and aims to allocate to responsibly sourced physical gold.

“As market leaders in gold, precious metals and commodity ETPs, we remain committed to building our differentiated product range and developing best in class solutions for investors.”

The launch was driven by expectations of continued increases in demand, with recent research commissioned by WisdomTree and conducted by CoreData suggesting that 37.5% of professional investors surveyed intend to increase their gold allocation in the next 12 months.

The ETP joins the firm’s existing 11-strong gold product range, which consists of low-cost gold solution WisdomTree Physical Swiss Gold (SGBS), physically-backed, currency hedged and synthetic ETPs as well as leveraged and inverse exposures.

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Nitesh Shah, director of research for Europe, added: “Gold can play a number of roles in portfolios and deserves a strategic allocation as part of an investor’s core holding, particularly at a time of unprecedented monetary easing and fiscal stimulus.

“The diversification benefits of gold in 2020 so far has helped investors mitigate volatility and uncertainty, emphasising the importance of holding this historic safe-haven asset in portfolios.

“Looking forward, with inflation once again on investors’ minds, the need to hold effective hedges against inflation, eroding portfolio value, will become all-the-more important – 2021 could see another year of strong returns for the precious metal.”



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