Bringing you live news and features since 2006 

WisdomTree launches Efficient Gold Plus Equity Strategy Fund (GDE)

RELATED TOPICS​

ETF issuer WisdomTree Investments has launched the WisdomTree Efficient Gold Plus Equity Strategy Fund (GDE), an actively managed ETF with an expense ratio of 0.20 per cent. 

The firm writes that GDE provides exposure to a basket of US equity securities of large-capitalisation companies, generally weighted by market capitalisation, with capital efficient exposure to gold futures added on top.

Investors seeking to diversify their equity exposure will often allocate to fixed income or alternative assets, like gold, in separate trades – requiring two separate outlays of capital. WisdomTree believes that GDE is an innovative and capital efficient alternative for large cap US equity, multi-asset, or alternative ETFs.

“We are anticipating sustained elevated inflation over the next three to five years, and with historically low global interest rates and high inflation comes the need for diversification to hedge macro risks,” says Jeremy Schwartz, Global Chief Investment Officer at WisdomTree. 

“We believe gold exposure is an important strategic diversifier for equity portfolios, but the challenge for long-term equity bulls has been a lack of desire to reduce core allocations to stocks to fund positions in gold. With GDE, investors can now add gold exposure on top of a traditional core stock allocation. In addition, GDE provides further leverage to our capital efficient suite of funds that started with stock and bond efficient combinations.”

The firm writes that to help magnify the potential benefits of the asset allocation, the strategy layers gold futures exposure on top of US equities.

Large-Cap U.S. Equity Basket – For every USD100 invested, USD90 is invested in US equity securities of large-capitalisation companies generally weighted by market capitalisation

Gold Futures – USD90 of U.S. listed gold futures contracts overlay the USD90 of equity exposure and USD10 of cash collateral

Cash Collateral – USD10 is kept in high-quality, short-term U.S. money market securities that earn returns comparable to US Treasury bills

Leverage – Based on this structure, the total accounting leverage of the strategy is enhanced to 1.8x, as for every USD100 invested there is USD180 of total exposure to equities and gold futures
 

Latest News

Saving and investing app, Moneybox, has doubled the number of ETFs available on the platform, in the light of ‘growing..
Global X ETFs has announced the appointment of Ryan O'Connor as its Chief Executive Officer effective as of April 8, 2024. ..
Value-driven structured credit investing firm, Angel Oak Capital Advisors, LLC, has announced the completed conversions of two of its mutual..
Confidence in the continuing strength of bitcoin and Ethereum is driving wider interest in altcoins and other digital assets, according..

Related Articles

Graham MacKenzie, Toronto Stock Exchange
The evolution of ETFs has been a multi-decade experience for Toronto Stock Exchange says Graham MacKenzie, managing director, Exchange Traded...
Frank Koudelka, State Street Global Services
ETF data provider and ETF Express data partner, Trackinsight, has published its Global ETF Survey 2024 Report: ‘50+ Charts on...
Cryptocurrencies
Matteo Greco, Research Analyst at Fineqia International writes that bitcoin (BTC) ended the week at approximately USD52,150, showing a notable...
US Distribution Awards trophies
The winners of the first US ETF Distribution Awards at the Exchange conference, hosted by ETF Express and sponsored by...
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