Exchange Traded Concepts, Perth Mint Launch Physical Gold ETF
This article was originally published on ETFTrends.com.
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 (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."
Related: Why Investors Should Be Looking at Gold ETFs
Exchange Traded Concepts is the leading investment advisor with a turnkey ETP platform that provides time sensitive and cost-effective methods to bring an Exchange Traded Fund to market. Seasoned ETF professionals have the experience plus the industry expertise required to navigate the complexities of launching, marketing, distributing and managing an ETF.
ETC provides firms with the guidance necessary to maintain full regulatory compliance. With 27 funds and more than $5.5 billion in AUM, ETC is the recognized leader in helping firms develop intelligent investment solutions within the ETF universe for all types of asset classes.
The Perth Mint is the trading name of Gold Corporation, the Custodial Sponsor and Custodian of the Perth Mint Physical Gold ETF. It is wholly owned and guaranteed by the Government of Western Australia. The Perth Mint is Australia's largest fully integrated precious metals refining, minting and depository enterprise.
Perth Mint's refinery is one of a select group globally that is accredited by the five major gold exchanges, being the London Bullion Market Association (LBMA), New York Commodities Exchange (COMEX), Shanghai Gold Exchange (SGE), Tokyo Commodities Exchange (TOCOM) and Dubai Multi Commodities Centre (DMCC). Processing more than 92 percent of the gold mined in Australia, the world's second largest producer of gold after China, its total production capacity is in excess of 800 tons of gold per year.
Related: Gold, Gold ETFs Could Rally Before Year End
The Perth Mint also operates the most extensive network of central bank grade vaulting facilities in the southern hemisphere, where it safeguards precious metals worth billions of dollars on behalf of investors. As one of Western Australia's top five exporters, The Perth Mint distributes approximately USD 14 billion of precious metal bars and coins to more than 130 countries annually, which is equivalent to approximately 10 percent of the world's annual gold production.
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