The FinEx Physically Held Gold ETF, which is backed by physically held Gold Bullion in vaults in London, tracks gold prices on the London Gold Fixing Price. Shares in the ETF will be available in both US dollars and rouble. It is listed on both the Irish Stock Exchange and Moscow Exchange, via a passporting mechanism.
Simon Luhr, managing partner and CEO, FinEx Capital Management, said: “Our Gold ETF is the first regulated Irish gold fund to list as an ETF. In Russia, cross listed investment products have to be fully regulated, so we have launched this product as an ETF rather than an exchange traded commodity (ETC) or note.
“Investing in gold via an ETF is a secure and safe way to gain exposure to this commodity, and being backed physically provides reassurance to investors. Our research shows there is substantial appetite among investors for gold now and going forwards. We anticipate significant demand for this product, especially in Russia.”
FinEx also revealed research that showed institutional investors are bullish over the outlook for gold, with 42% believing the price of gold will increase over the next one to three years - including 4% who believe the price of gold will see a dramatic rise. FinEx found only 14.5% of institutional investors anticipated that the commodity would fall in value.
The survey found the major drivers behind the confidence of a rising gold price were the risk of another financial shock, which 41% said was a ‘significant’ or ‘very significant’ factor, and geopolitical uncertainty, which 38.5% said was ‘significant’ or ‘very significant’.
FinEx also found that nearly half (49%) of institutional investors felt ETFs and ETPs were the most suitable investment vehicle for investing in gold, with 53% of institutional investors saying that ETFs/ETPs offered cost efficiency benefits for gold investments, followed by liquidity (38%) and transparency (22%).