Van Eck Global lists world’s largest gold equities ETF on ASX

New York investment managerVan Eck Global announced the Australian listing of one of the world’s most popular ETFs, the Market Vectors Gold Miners ETF (ASX code: GDX). GDX invests in global gold mining companies of all sizes. Australian investors can now get exposure to a diversified portfolio of global gold equities including the world’s largest gold producers in a single trade on ASX.

Arian Neiron, Managing Director,Van Eck Global Australia, said: “GDX is both the world’s largest gold equities ETF and the flagship Market Vectors ETF globally. With total assets in excess of US$6.3 billion it captures the global nature of the gold mining industry including Australian assets. GDX’s popularity with brokers, hedge funds and retail investors has made it one of the US’ top 20 traded exchange traded products, with turnover of US$12.4 billion in May 2015 alone according to Deutsche Bank, US ETF Market Monthly Review (3 June 2015).

“Many investors prefer to purchase gold miners’ equities as their value historically has been more sensitive than bullion to the price of gold. In addition as gold shares can pay dividends, gold equities provide income whereas holding bullion incurs storage costs. GDX and gold have a number of characteristics in common, such as a low correlation to other asset classes and they are both used as a currency hedge, a hedge against inflation and as a trading tool by large institutions.

With nearly 50 years of experience managing gold equities, Van Eck Global has the longest tenure among global asset managers in this sector. We are delighted to introduce our flagship GDX fund to Australia at a time when the ratio of gold equities to gold bullion prices is at all-time lows.”

 

Fund	ASX code	Features	Management Fee
Market Vectors Gold Miners ETF	GDX	The world’s largest global gold miner equities ETFTop 20 US exchange traded products by turnover Seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the NYSE Arca Gold Miners Index, which aims to track the overall performance of companies involved in the gold mining industry Total assets at 30 April 2015: $6.3 billion The ETF normally invests 80% of its total assets in stocks and depository receipts of gold mining companies. The weight of companies whose revenues are more significantly exposed to silver will not exceed 20% of the Index. At 30 April 2015, the Index included 38 securities of companies with a weighted average market capitalisation of $6.2 billion The ETF is domiciled in the US and is unhedged All the benefits of ETFs including: – Simple trading on the ASX – Liquid – Transparent daily holdings – Cost effectiveness Top 5 companies by weighting (at 31/5/15): Goldcorp Inc. (6.86%); Barrick Gold Corporation (6.55%); Newmont Mining Corporation (6.45%); Newcrest Mining Limited (5.27%) and Agnico-Eagle Mines (5.22%) Country breakdown (at 31/5/15): Canada (54.5%); United States (13.5%); South Africa (10.0%); Australia (7.3%) China (4.9%)	0.53% p.a.

 

Source: FCR Financial & Corporate Relations