Gold exchange traded funds have provided individual and institutional investors highly liquid and easy access to the price movements in gold bullion, and soon, Ghana will be able to trade a gold-backed ETF on its local stock exchange.

On Wednesday, the Ghana Stock Exchange is listing the Absa Capital’s NewGold Fund, the first ETF on the exchange, Reuters reports. NewGold is already listed in South Africa, Nigeria and Botswana.

Managing Director Kofi Yamoah believes the fund will help diversify investments beyond the traditional equities and bonds available.

“The introduction of Exchange Traded Funds to the GSE offers both individual and institutional investors a cost efficient and convenient way to invest in multiple shares or other assets, such as commodities, through a single security,” Yamoah said in the article.

The new ETF will be go on a trial run, offering 400,000 units at 31 cedis per unit, or the equivalent of $15.99, before any potential expansions. Each unit will represent 1/100 of an ounce of gold bullion. [Gold ETF Holdings Hit Record on Eurozone Fears, Stimulus Hopes]

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