ETF Spotlight on ETFS Physical Swiss Gold Shares (NYSEArca: SGOL), part of a weekly series.
Assets: $695 million
Objective: Seeks to reflect the price performance of gold bullion, minus expenses
Holdings: Gold bars, held in vaults in Zurich, Switzerland
What You Should Know
- Bar numbers held in the vaults are updated daily on ETF Securities’ website
- All gold purchases made by the trust are made by third parties; the gold is then delivered by those parties to the custodian
- Bank of New York/Mellon oversees all movements of the metal in and out of the turst
- When a creation or redemption in the fund is done, the physical metal is moved in or out, and it can’t be moved without the trustee’s approval
- The gold bars are inspected by an external auditor every year; one audit is done on Dec. 31, the second is done at random
- If you’re worried about the bars being destroyed, it’s virtually impossible for that to happen
The Latest News
- SGOL is nearing its first anniversary – it launched on Sept. 9, 2009; since then, it’s up 23%
- Gold prices have hovered around records since the height of the European debt crisis
- Gold is primarily a safe-haven tool, known for holding its value and as a hedge against inflation
- On Aug. 11, SGOL hit record trading volume of 1.7 million shares
Visit our ETF Spotlight page for all the archives.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.