ETF Securities has listed a gold exchange-traded commodity (ETC) on the Xetra platform of the Deutsche Boerse.
The ETFS Physical Swiss Gold is an exchange-traded bond backed by gold bullion, physically stored in vaults in Switzerland.
The price of the product is based on the spot price of gold, less expenses. The gold is priced off the London Bullion Market Association's (LBMA) daily fixing price and specifications for good delivery.
The issuer says shares can only be issued when the gold bullion is delivered into the trust account at the custodian's value, which is independently inspected twice a year. The trustee must also approve all deposits and withdrawals of bullion held by the custodian.
ETFS global head of sales and marketing Hector McNeil says: "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."
The ETC has a management fee of 0.39%. Deutsche Boerse's ETC segment product range consists of 142 products, with monthly trading volume averaging around €400m.
£1bn business since inception
Considered doing so in 2015
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