Exchange Traded Concepts, in conjunction with The Perth Mint, Australia’s largest fully integrated precious metals refining, minting and depository enterprise, launched the Perth Mint Physical Gold ETF (NYSEArca: AAAU) on Wednesday.
This is the first ETF to give investors exposure to physical gold backed by a sovereign entity. It is also the only gold ETF with vaults in Asia, offering investors an attractive alternative to traditional vault centers which is recommended for institutions holding more than $20 million in physical gold.
“We are thrilled to be working with The Perth Mint to bring such a timely and innovative fund to market,” said J. Garrett Stevens, CEO of Exchange Traded Concepts. “Ideas for compelling new ETFs can come from all corners, and we could not be more pleased to have The Perth Mint as our first collaborator from the world of sovereign entities.”
The Perth Mint has built a reputation as a high-quality refiner and manufacturer of gold over its 119 years of operation. AAAU shares are backed by physical gold with a purity of 99.5 percent, which is secured within The Perth Mint’s network of central bank grade vaults in Western Australia.
The Perth Mint may, on rare occasions, store the gold in other highly secure vaults. All the gold held on behalf of AAAU is guaranteed by the Government of Western Australia. Additionally, AAAU will pay all of its expenses in gold ounces and will not hold any cash, minimizing the potential for tracking errors.
Exchange Traded Concepts is responsible for launching a number of innovative and fast-growing ETFs, including the ROBO Global Robotics & Automation ETF (ROBO), which has more than $2 billion in assets, and the Emerging Markets Internet & Ecommerce ETF (EMQQ), which now has more than $400 million in AUM.
“Great colleagues and great ideas are the true drivers of ETF success,” continued Stevens. “We’re very pleased to add The Perth Mint and AAAU to our growing list of affiliates and innovative ETF solutions.”