International X ETFs have launched the International X Gold Bullion ETF (ASX: GXLD), increasing the corporate’s vary of gold-backed merchandise. GXLD will praise International X’s flagship product, International X Bodily Gold (ASX: GOLD), offering traders extra alternative in deciding on a product that’s greatest suited to their general funding technique.
GXLD goals to copy the actions within the Australian greenback worth of gold, much less the annual administration charge, by investing in bodily gold bullion bars. With a administration charge of 0.15% each year, it’s at present the lowest-cost physical-backed gold ETF within the Australian market, offering a cheap possibility for traders searching for longer-term publicity to gold as a core portfolio allocation.
The launch represents the newest achievement in International X’s pioneering historical past in gold-backed ETFs, having reached over $3 billion in FUM, representing a 70% market share. Notably, International X made historical past by introducing the world’s first gold-backed exchange-traded product, GOLD, in 2003.
International X ETFs Chief Govt, Evan Metcalf stated, “As the most important and most liquid gold-backed change traded product in Australia, our flagship product GOLD is valued by our purchasers, particularly for traders prioritising transaction prices and liquidity. GXLD permits us to ship the identical worth to traders trying to spend money on gold over the longer-term. GLXD’s decrease administration charge of simply 0.15% has the potential to translate into vital value financial savings for these traders over very long time horizons.”
“This resilience presents a promising alternative for traders. With the launch of GXLD, we’re excited to supply Australian traders a wide range of alternative that permits them to capitalise on the enduring worth of gold, based mostly on what’s greatest suited to their distinctive portfolio wants,” Metcalf stated.
Gold costs have surged 20 per cent over the previous two months to report highs above US$2400 (AU$3754) an oz. regardless of current challenges like elevated actual bond yields and a sturdy US greenback, which traditionally have labored in opposition to gold’s favour.
International X ETFs Senior Product and Funding Strategist, David Tuckwell stated, “The gold worth has been pushed as much as report highs largely by central financial institution shopping for – notably in China because it goals to diversify its reserves away from the US greenback. China has seen gold shopping for enhance extra broadly as traders search out returns outdoors its underperforming fairness and property markets.
“Though the gold worth has seen a small correction in current weeks, wanting into the second half International X believes gold costs are effectively supported. Statistically, one of the best two predictors of the gold worth are actual yields on US authorities debt and the energy of the US greenback. With markets forecasting these to presumably fall late in 2024 or early in 2025, if historical past is any information, we could possibly be in for an additional leg up within the gold worth.”
GXLD is the thirty seventh product within the firm’s robust product lineup in Australia.
