Franklin Templeton has announced the launch of Franklin Responsibly Sourced Gold ETF (FGLD). The firm writes that FGLD seeks to reflect the performance of the price of gold bullion, less the expense of fund operations, and is priced at 15 basis points. The shares will trade on NYSE Arca.
The Fund defines “responsibly sourced gold” as London Good Delivery gold bullion bars that were refined on or after January 1, 2012, which have been refined in accordance with London Bullion Market Association’s (“LBMA”) Responsible Gold Guidance. The LBMA’s Responsible Gold Guidance establishes minimum requirements that are mandatory along the entire gold supply chain for all Good Delivery refiners wishing to trade with the London Bullion market, intended to ensure, among other things, that London Good Delivery gold is mined through verified supply chains that meet certain internationally recognised ethical standards.
“We are excited to offer Franklin Responsibly Sourced Gold ETF (FGLD) as one of the most cost-effective gold ETFs in the market. We believe it’s a fantastic option for investors looking to add gold investments to their portfolios, offering a compelling way to participate in the physical gold market, with the added peace of mind of knowing that this gold is responsibly sourced,” says David Mann, Head of Global Exchange-Traded Funds (ETFs) Capital Markets.
Commenting on the launch, Todd Mathias, Head of U.S. ETF Product Strategy, says, “As we continue to thoughtfully build our ETF platform for the future, we are excited to be an industry leader with this listing. The LBMA’s Responsible Sourcing Program aims to protect the integrity of the global gold supply chain by requiring approved refiners to demonstrate their efforts to respect the environment globally and combat money laundering, terrorist financing and human rights abuses. Many clients have considered gold’s historically low correlation to traditional stocks and bonds to be an important diversifier, and we expect that to continue. We are thrilled to bring an ESG-focused ETF in this asset class.”