New A$ Hedged Gold Bullion ETF on the ASX

I work for BetaShares Capital, an Australian Exchange Traded Fund (ETF) issuer, and I wanted to introduce our new gold product to the members of the Silver Stackers forum.

We have just listed Australia's first currency hedged Gold Bullion ETF (ASX Code: QAU). Backed by physical bullion held by JPMorgan Chase in their London vault, the product allows investors to obtain physical gold exposure as simply as buying any share on the ASX. Also, the product is currency hedged, so for the first time investors can obtain "pure" exposure to the price of gold without worrying about fluctuations in the AUD/USD exchange rate.

As members of this forum are well aware, the impact of currency movement has had a dramatic impact on returns from gold for Australian investors. For example, over the past two years, an unhedged gold exposure would have returned about 5% per year, whereas the U.S. spot price has returned about 28% per year. The new hedged Gold ETF (QAU) aims to track the U.S. spot price of gold so if gold rises from US$1,500 to US$1,650, the ETF should rise 10% too.

For more information on the product see:
BetaShares Gold Bullion ETF (A$ Hedged) product factsheet http://cms.betashares.com.au/cms-admin/_images/15064565924dbfe036038b4.pdf
BetaShares Gold Bullion ETF (A$ Hedged) product brochure http://cms.betashares.com.au/cms-admin/_images/12370788944dc09e6654530.pdf

Or feel free to contact me via this forum, PM me, or call 1300 487 577

I would be very interested to hear members feedback

_________________________________________________________________________________________________________________________
Disclosure: I work for BetaShares Capital, an issuer of Exchange Traded Funds (ETFs), including Australia's first A$ Hedged Gold Bullion ETF
These views are my own and not the views of BetaShares

 

"the ETF should rise 10% too"

Can you give an example where this wouldnt be the case?

 

You're trying to sell a piece of paper on this forum that is backed by PM that is held in a JPM vault?

...

Really?

Don't get me wrong, I appreciate being informed and it seems like a good thing but... couldn't you have the gold stored somewhere more reputible?

We've all heard about the gold "lending" practices that take place in these vaults.

 

hiho,
As set out in the product disclosure statement (PDS), the investment objective of the fund is to provide investors with a return that tracks the performance of the price of gold bullion, with a currency hedge against movements in the AUD/USD exchange rate, before fees and expenses. So fees and expenses are one reason for a potential divergence between the investment objective and the actual performance. Also, like with any hedged product, there is no assurance that the currency hedging strategy will perfectly offset the actual fluctuations in the AUD/USD exchange rate

Please see the product disclosure statement (PDS) for further information on these points.

 

2ds,
Under the terms of the custody agreement with JPMorgan, they are not permitted to lend the gold, or otherwise deal with it in any way.

Please note that while I will endeavour, from time to time, to respond to certain posts, for compliance reasons I will be unable to do so on a regular basis. I would encourage those interested to refer to the BetaShares website and/or to contact BetaShares directly on the customer service line (1300 487 577).

_________________________________________________________________________________________________________________________
Disclosure: I work for BetaShares Capital, an issuer of Exchange Traded Funds (ETFs), including Australia's first A$ Hedged Gold Bullion ETF
These views are my own and not the views of BetaShares

 

Just a question regarding this ETF you have said that it will be tracking the price of gold in USD but in the fact-sheet it says you will be using currency forwards(i assume futures contracts) to price in AUD. So a rise in the price of gold in USD(USDX lower) will generally mean a higher AUD thus gold lower when priced in AUD.

Will this product reflect prices in AUD or USD? getting exposure to gold priced in USD sounds nice.

 

Nukz,
The product aims to give investors exposure to the returns of the price of USD gold bullion, before fees and expenses.

Please see the product disclosure statement (PDS) for further information.


_________________________________________________________________________________________________________________________
Disclosure: I work for BetaShares Capital, an issuer of Exchange Traded Funds (ETFs), including Australia's first A$ Hedged Gold Bullion ETF
These views are my own and not the views of BetaShares

 

Thanks for the fast reply, will take a look later sounds interesting.

 

Thanks betashares.

As a raving AUD and Gold bull, i've been waiting for this for the past 4-5 years.

I did find some USD Gold exposure in a Deferred Purchase Agreement, which has done very well, but I will definitely be looking at this.

I read an article in the AFR a few months ago about this but I swear it suggested that ETF Securities was the one doing it, i emailed them and got no info.

Anyway, thanks again for letting us know.

 

Like the Perth Mint? I couldn't agree more

Be nice to the betashares guy, silverstackers - probably not aware that JPM does not have a good reputation with many "bugs".