Since the minting of the first gold coins more than 2,500 years ago, gold has been prized as an easily tradable object of value. Gold is comparatively rare, cannot be reproduced artificially, and is extremely durable yet easy to process. In addition, it has high aesthetic value. These aspects continue through to the present day, making gold one of the most sought-after assets in the world.
Investors looking to invest in gold can choose from a range of options. The most direct way is to purchase gold bars or coins, but this involves high transaction and storage costs. For more indirect exposure to gold, investors can invest in the equities of relevant mine operators, for example. Gold ETCs seek to track the gold price. With Xtrackers gold ETCs, investors can potentially benefit from a number of key advantages here:
Xtrackers offers three Gold ETCs: an ETC denominated in US dollars, and currency-hedged ETCs in Euros and Sterling. All ETCs are backed by allocated physical gold. However, investing in ETCs will not make an investor the owner of the relevant metal. Each ETC series has exclusive title over an allocated pool of gold, stored in secure accounts. For Xtrackers ETC plc, the allocated gold also aims to adhere to the London Bullion Market Association’s Responsible Sourcing Guidelines.
Just like with all other investments, gold ETC investments are also associated with certain risks, including market, currency, inflation and liquidity risks. For more information, please refer to the Key Risk Factors’ section.
|Name||ISIN||FX Hedged||Total Expense Ratio (TER) p.a.|
|Xtrackers IE Physical Gold ETC Securities||DE000A2T0VU5||no||0.15%|
|Xtrackers IE Physical Gold EUR Hedged ETC Securities||DE000A2T5DZ1||yes, Euro||0.33%|
|Xtrackers IE Physical Gold GBP Hedged ETC Securities||DE000A2UDH48||yes, GBP||0.33%|
|Xtrackers Physical Gold ETC||GB00B5840F36||no||0.25%|
|Xtrackers Physical Gold ETC (EUR)||DE000A1E0HR8||no||0.25%|
|Xtrackers Physical Gold EUR Hedged ETC||DE000A1EK0G3||yes, Euro||0.59%|
|Xtrackers Physical Gold GBP Hedged ETC||GB00B68FL050||yes, GBP||0.69%|
Investors should be aware that Xtrackers ETCs represent collateralised securities with limited right of recourse. Their repayment depends on the underlying commodities in the case of physical Xtrackers ETCs, and on the deposited securities in the case of index-based Xtrackers ETCs. Such securities normally involve physical gold, but this can be replaced by approved financial instruments under certain circumstances.
7. Currency risks are possible losses or profits of an investor who converts money from one currency into another, invests in foreign currencies or trades internationally. For more information please see the Key Risk Factors section.