Bringing you live news and features since 2006 

ETF Securities US sees strong inflows into gold as investors seek safety amid volatile markets


ETF Securities USA LLC, the sponsor to the ETFS Gold Trust says that assets in its ETFS Physical Swiss Gold Shares ETF (NYSE Arca: SGOL) have surpassed USD1 billion. Inflows into the third largest gold ETF in the US continue amid volatile equity markets.

Launched on 9 September, 2009, SGOL is one of the leading US commodity-based ETFs which provides investors with simple, secure and cost-effective access to the gold bullion market. SGOL is modelled after the ETFS Gold Bullion Securities (GBS), the first physically-backed precious metal ETF in the world developed by ETF Securities (UK) in 2003.

Designed to reduce the barriers to investing in gold, SGOL holds physically-allocated gold bullion bars in secure vaults in Zurich, Switzerland with the objective of reflecting the performance of the price of gold bullion, less expenses. The Trust is priced off the London Bullion Market Association's specifications for Good Delivery, is an internationally recognised and transparent benchmark for pricing physical gold. Inspectorate International Limited, a leading commodity inspection and testing company, inspects the vault two times annually, once at random.

Steven Dunn, executive director and head of US distribution, says: "Precious metals, especially gold, remain the cornerstone of our product offering. We believe this performance, while undoubtedly aided by current market conditions, is also due to the ongoing investment we have made in our distribution and research capabilities in recent months. In addition to my appointment in September 2015, we also hired a director of strategic partnerships and a head of US Product Operations. These hires demonstrate our commitment to expanding our US market share and positioning the firm for substantial growth."

James Butterfill, head of research and investment strategy, adds: "In light of the recent and unexpected Brexit event we have adjusted our year end fair value of gold to $1400. We expect sentiment towards gold to remain buoyant during this extended period of uncertainty. We believe investors are buying gold as an insurance asset, a hedge against tail-risks and spikes in volatility that seem increasingly likely against the backdrop of geopolitical tensions and anti-establishment sentiments in the political arena."

Latest News

As the ETF industry reaches a milestone of USD12.71 trillion in global assets, Brown Brothers Harriman writes that its 2024..
Matteo Greco, Research Analyst at Fineqia International writes that bitcoin closed last week at approximately USD66,300, marking a 7.8 per..
HSBC Asset Management’s (HSBC AM) ETF and Indexing business has passed USD100 billion in assets under management (AUM), reflecting its..
Amundi’s ETF Market Flows Analysis for April reveals that investors added EUR54.1 billion to global ETFs in April with equities..

Related Articles

Dan Miller, IQ-EQ
With just over a week to go till T+1 settlement begins in North America, Canada and Mexico, time is of...
Emily Spurling, Nasdaq
Last October’s ETF Express US Awards 2023 found Nasdaq winning Best Index Provider – ESG ETFs and Best Index Provider...
Vinit Srivistava, MerQube
Index provider, MerQube, launched in 2019, with the aim of providing a “technology-driven answer to the most complex, rules-based investment...
Sean O' Hara
Pacer ETFs has announced the launch of three Cash Cows UCITS ETFs. The firm writes that this will give European...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by