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VTB implements first delivery of physical gold to an exchange-traded fund


VTB Bank has carried out the first delivery of physical gold to the  VTB – Gold. Exchange-traded fund (VTBG ETF). This is the only exchange-traded fund in Russia that invests in physical gold and is backed by gold ingots held in VTB bank. Trading in the shares of the ‘VTB – Fund Gold. Exchange’ was launched on the Moscow stock exchange in June this year. At the initial stage, its underlying asset was the SPDR Gold Shares ETF. Now the assets of the VTB exchange traded fund will be invested in gold ingots. The maximum total cost of the VTBG ETF (TER) will be 0.66 per cent per annum. The brokerage commission for transactions with VTB ETF is 0 per cent for transactions via the mobile investment platform ‘VTB My Investments’. Users, and even novice investors, can buy and sell shares in one click in the VTB My Investments mobile app. 

Investments in the ‘VTB – Gold. Exchange-traded fund’ can be in rubles or dollars. Such small lots are an essential advantage of the fund for retail investors in comparison with the purchase of gold ingots. Upon owning a fund for at least three years, the investor can receive a tax deduction. In addition, it is a liquid asset that is traded on the stock exchange, which provides advantages over a bank deposit, since the investor can receive their funds at any time without losing the accumulated yield.
“The ongoing monetary expansion of global central banks is increasing the attractiveness of gold compared to deposits and bonds, so in the current market environment, gold is one of the most reliable assets, and we expect it to maintain its investment attractiveness in the near future. This fund allows a wide range of investors to invest directly in physical gold that is stored in Russia, rather than in international ETFs that store gold elsewhere. At the same time, there is no VAT on both the purchase and further sale of gold ingots from the VTB – Gold. Exchange-traded fund. An exchange-traded fund with a market spread from a market maker of 0.4 per cent makes the mechanism for investing in physical gold also one of the most affordable. And the investment tax deduction makes this tool certainly the most effective for long-term investors, ” comments Vladimir Potapov, Chief Executive Officer of VTB Capital Investments, senior Vice President of VTB.
Atanas Djumaliev, Head of the Global Commodity Markets Operations Department at VTB Capital, says: “VTB Bank is the leader of the Russian precious metals market and an active participant in the international market. The gold reserves in the VTB vault allow us to meet the demand from our customers as much as possible, and the gold ingots meet international standards. This allows us to provide high liquidity and meet demand in the shortest possible time. in the context of growing interest from investors in protective assets, investments in exchange-traded funds backed by gold ingotsare becoming more popular, and we are confident that the fund will become a popular tool among Russian investors.”
Interest in investing in gold is growing rapidly. According to the World Gold Council, more than 60 per cent of respondents in Russia consider gold to be the most effective protective asset against currency fluctuations and inflation, and a reliable investment tool. Today, the world’s gold reserves of such exchange-traded funds are comparable in volume to the reserves of central banks and amount to approximately 3,400 tons.

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