Lyxor Asset Management has launched an ETF on the MSCI ACWI Gold with EM DR 18% Group Entity Capped Index on the SIX Swiss Exchange. …..
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This new ETF provides investors with an alternative way to play the gold theme. Instead of investing in gold itself, investors can access the performance of the gold mining companies whose fortunes are strongly tied to «Physical Gold» prices.
The Lyxor ETF MSCI ACWI Gold is suitable for investors who are seeking to gain exposure to gold mining equities through a European UCITS vehicle. It allows investors to capture the return of equities that have a strong relationship to the price of gold*. Gold has become an increasingly popular investment as investors look to benefit from the performance and diversification it can bring to a portfolio. Accessing the performance of commodities by investing in the companies that generate an income from its production has become an increasingly common practice. Through the MSCI ACWI Gold with EM DR 18% Group Entity Capped Index, this fund provides exposure to Large and Mid Cap gold equity stocks from the Developed and Emerging Markets. For Emerging Markets companies only, Depositary Receipts are included in order to improve liquidity. Constituent weights are capped in order to limit index concentration.
Investing in gold related equities can provide a number of advantages.
The MSCI ACWI Gold with EM DR 18% Group Entity Capped Index offers exposure to companies which, according to the GICS classification generate income from gold or gold related products. Although the commodity exposure is less direct, gold related equities can offer the benefit of providing long-term equity growth (e.g., dividend income and capital appreciation). At the same time, investors can also benefit from the same diversification advantage of investing in commodities.
Lyxor ETFs: LYXOR ETF MSCI ACWI GOLD
Currency: USD
Underlying Index: MSCI ACWI Gold with EM DR 18% Group Entity Capped Index
Management Fees: 0,50%
ISIN Codes : 0,50%
BBG code: GLDU SW
*Correlation between gold mining equities and physical gold of 91% – Correlations Over Time for MSCI ACWI GOLD Index with BofA ML Commodities Indices (June 2010 to June 2012)
Source: ETFWorld.co.uk
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