db-X ETC (Exchange Traded Commodity) has listed the World’s first Gold ETC hedged in SGD on the London Stock Exchange.
As the product is hedged in SGD, an investor will be able to get exposure to any full potential upside (or downside) in percentage terms of the underlying gold (net of fees).
If you are not familiar with Exchange Traded Commodities (ETC), you can refer to this guide:
ETC Brochure by London Stock Exchange
But before you even consider investing in such a product, you should know the difference between a ETF, ETP and ETC and understand the risks behind them.
What is the Difference between an ETF and an ETP? (Part 1)
The Difference between an ETF and an ETP (Part 2)
Understanding Exchange-Traded Commodities & Notes
Features of Gold ETC hedged in SGD
- Linked to the spot performance of gold (less fees)
- Forex Hedged – Daily Forex hedged to minimize the SGD/USD exchange rate risk
- Backed by gold
- Liquid – Traded in USD in London with Deutsche Bank as the dedicated market maker
- Transparent – NAV published daily
Management fee: 0.29% p.a.
FX hedging fee: 0.40% p.a.
Bloomberg/Reuters Code: XGLI LN / XGLI.L
Trading Currency: USD
The product factsheet can be found here: db Physical Gold SGD Hedged ETC