Wilshire Phoenix has launched the Wilshire wShares Enhanced Gold Trust (WGLD) on NYSE Arca. WGLD tracks the Wilshire Gold Index, which seeks to outperform a stand-alone investment in gold and reduce its volatility without the use of any futures, leverage, or derivatives.
“The industry constantly touts innovation, but often disappoints by failing to deliver any meaningful new products for investors. In contrast, WGLD offers all investors immediate access to an entirely distinct strategy and structure in a transparent and efficient manner,” says Bill Herrmann, managing partner at Wilshire Phoenix. “WGLD combines an institutional-like strategy with retail-level ease of access to offer a dynamic, first-of-its-kind ETF. Today marks a considerable milestone for Wilshire’s wShares as we plan to offer many more accessible products that combine institutional-like characteristics with our thoughtful approach.”
Long considered a safe-haven asset, gold reached all-time highs in 2020 as investors grappled with heightened market uncertainty. Despite its prominence, gold has often exhibited significant volatility, and WGLD seeks to mitigate that risk.
“We took a hard look at the ETF landscape and saw plenty of opportunities to deliver an innovative product for investors,” says Will Cai, partner and head of Wilshire’s wShares. “Many investors underestimate or get spooked by volatility, which can lead to poor decision making. We wanted to limit some of that uncertainty with the creation of WGLD.”
Developed by the Wilshire Phoenix team, the proprietary index utilises an adaptive exposure approach to automatically rebalance physical gold and cash based on changing market conditions. This rebalancing allows for a passive investment vehicle to seek more robust performance and a decreased risk profile when compared to a stand-alone investment in physical gold. WGLD does not make use of any futures, leverage, or derivatives to achieve its investment objective.