The only listed pure play ETF provider WisdomTree, has launched a new low-cost physically-backed gold ETP (exchange-traded procduct). The WisdomTree Core Physical Gold ETP (WGLD), listed on the London Stock Exchange, has a management expense ratio of just 15 basis points abd is designed to offer investors a simple way to access the gold market by providing a return equivalent to the movements in the gold spot price.
WisdomTree Core Physical Gold is backed by physically allocated gold stored in secure London vaults by the custodian on behalf of WisdomTree. WisdomTree launched the world’s first physically gold ETC in 2003 and, with $17 billion of assets under management across its range of gold products, it is one of Europe’s largest gold ETC providers.
Alexis Marinof, Head of WisdomTree Europe, said: “WGLD complements our extensive range of gold ETPs, including the most comprehensive physical gold ETP range in Europe – so investors can choose the exposure that’s absolutely right for them. WGLD is backed by physical gold stored in vaults located in London, the world’s most liquid gold market, and aims to allocate responsibly sourced physical gold. As market leaders in gold, precious metals and commodity ETPs, we remain committed to building our differentiated product range and developing best in class solutions for investors”.
WisdomTree provides Europe’s broadest range of gold ETPs, with WGLD joining WisdomTree’s 11 strong gold product range which consists of low-cost gold solution WisdomTree Physical Swiss Gold (SGBS), physically-backed, currency hedged, synthetic ETPs as well as leveraged and inverse exposures to meet the needs of different investors across Europe.
Research, commissioned by WisdomTree[3] and conducted by CoreData, revealed that more than one in three (37.5 percent) professional investors surveyed intends to increase their gold allocation in the next 12 months. While gold prices have pulled back from record highs set in August 2020, investor interest remains high. The precious metal has been one of the standout performers, returning 20 percent this year.
Nitesh Shah, Director, Research, Europe, WisdomTree added, “Gold can play a number of roles in portfolios and deserves a strategic allocation as part of an investor’s core holding, particularly at a time of unprecedented monetary easing and fiscal stimulus. The diversification benefits of gold in 2020 so far has helped investors mitigate volatility and uncertainty, emphasising the importance of holding this historic safe haven asset in portfolios. Looking forward, with inflation once again on investors’ minds, the need to hold effective hedges against inflation, eroding portfolio value, will become all-the-more important – 2021 could see another year of strong returns for the precious metal”.
