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AdvisorShares launches four gold/currency ETFs


AdvisorShares, a sponsor of actively managed exchange-traded funds, has launched four ETFs providing gold exposure in different currency terms through a 40 Act structure.

The new ETFs are: AdvisorShares Gartman Gold/Euro ETF (GEUR); AdvisorShares Gartman Gold/British Pound ETF (GGBP); AdvisorShares Gartman Gold/Yen ETF (GYEN); and AdvisorShares International Gold ETF (GLDE).
The ETFs are sub-advised by Treesdale Partners, a New York-based registered investment advisor.  Additionally, Dennis Gartman, editor and publisher of The Gartman Letter, will lend his institutional insight on educating advisors and investors about the AdvisorShares gold ETF suite as well as the merits of trading commodities in different currency terms during various market periods.
The investment objectives of the AdvisorShares Gartman Gold ETFs seek to provide positive returns by using their respective currencies to invest its assets in the gold market.
In pursuing the GEUR, GGBP and GYEN investment strategies, Treesdale will provide access to a popular investment approach from Gartman: using different currencies to fund a gold position.  GEUR uses the European Union's Euro; GGBP uses the British Pound; and GYEN uses the Japanese Yen. 
The foreign currencies are obtained through the sale of either exchange-traded currency futures or "over the counter" foreign exchange forward contracts. The funds alternate currency exposure seeks to neutralise US dollar risk, and assesses the dollar and corresponding foreign currency yield curve, determining the most positive net effect to purchase gold in different currency terms.
The investment objective of the AdvisorShares International Gold ETF (GLDE) seeks to provide positive absolute returns by investing in exchange-traded products (ETPs) that provide diversified exposure to the international gold market.  In pursuing the GLDE investment strategy, Treesdale will provide access to currency diversification, rather than using the US dollar exclusively, actively allocating its underlying gold positions to seek consistently attractive valuations. Along with the AdvisorShares Gartman Gold ETFs, GLDE allows access to a highly specialised portfolio manager with liquidity, transparency, and operational and tax efficiency. 
The four gold ETFs are not expected be subject to unrelated business taxable income (UBTI) and schedule K-1s, which are typically present in commodity-linked investments.
"Dennis Gartman's widely recognised analysis and commentary among leading corporate, financial and trading institutions is well-known, and we believe Treesdale adds another deeply experienced portfolio manager to the AdvisorShares active ETF suite," says Noah Hamman, chief executive officer of AdvisorShares. "We are pleased to partner with their combined expertise in bringing more innovative investment solutions to the active ETF marketplace."        
Ade Odunsi, managing director of Treesdale and portfolio manager of GEUR, GGBP, GYEN and GLDE, adds: "By choice or not, many gold investors today explicitly express that they expect the value of gold to increase relative to the US dollar. As a result, investors are exposed to risk factors that affect the supply and demand for gold, as well as the various factors that might impact the value of the US dollar on international currency markets. With these active ETFs, we believe investors now have unprecedented access to efficiently hold gold in different currency terms to avoid undesired and concentrated exposure to a single currency, such as the US dollar."
"Throughout the course of my career, I've discovered first-hand that a diligent and comprehensive approach to trading and investing can deliver positive returns to a diversified investment portfolio," says Gartman. "Among those lessons, I've learned that owning different commodities, especially gold, in different currency terms can provide added-value for any investor's alternative allocation."

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