ETF Securities offers diversification with vaulted gold-backed ETC

ETF Securities has listed a bullion-backed gold exchange-traded commodity (ETC) on the London Stock Exchange. The ETFS Physical Swiss Gold fund is backed by the London Bullion Market Association’s (LBMA) delivery bars and will custody all of its physical gold bullion in vaults in Zurich, Switzerland, thereby offering diversification benefits across issuer, custodian and geographies.

The product will undergo a biannual inspection performed by an independent external auditor and all gold bar identification numbers will be published.

The aim of the fund is to reflect the performance of the price of gold bullion with an open-ended ETC that offers investors exposure to physical gold in a cost-effective and convenient way while diversifying their gold holdings.

There is no counterparty or credit risk involved as the product is 100% backed by LBMA ‘good delivery’ bars, which differentiates it from other products that achieve bullion exposure through the use of derivatives and ‘unstamped’ gold.

“Investors have been asking us for a long time to develop a product that stores its gold in Switzerland in addition to our current gold ETC which stores its gold in London,” says Hector McNeil, global head of sales and marketing at ETF Securities in London.