UBS gives investors a new and interesting access to Gold

The newly-launched UBS-IS Gold ETF (USD) IX, while not allowing the option of redemption in kind, offers cost-effective access to gold for those investors who are obliged to invest in accordance with the European UCITS directives. To enable them to invest in gold while complying with the restrictions imposed on them, the new asset class “IX” has been created, with – in contrast to the other UBS Gold ETFs – the physical delivery of gold being deliberately prohibited.

The new ETF’s total annual costs (TER), at 0.3%, are impressive, and make it the best-value ETF of this type on the Swiss market. Where tradeability is concerned, too, UBS has taken account of investors’ needs: Although performance, as before, is based on the London Gold Fixing afternoon price in US dollars, the new Gold ETF can be traded not only in US dollars but also in euros.

As Thomas Merz, UBS Head of ETF Switzerland and Liechtenstein comments: “Many investors have again become interested in gold as a component in their portfolios. They expect the price of the precious metal to make it especially profitable in a market environment like today’s, with its low real interest rates and high liquidity. The UBS ETF now offers investors subject to UCITS, too, the opportunity to participate directly and simply in the performance of the price for physical gold.“

The new UBS ETF on the SIX:

UBS already offers ETFs on gold in US dollars and in currency-hedged versions in Swiss francs and euros, which can be traded on the SIX Swiss Exchange. There are two share classes available: the “A” share class is geared toward private clients, while the “I” share class addresses the needs of institutional investors and high net worth individuals.