ETF Spotlight on ETFS Physical Asian Gold Shares Trust (AGOL), part of an ongoing series.
Assets: $69.4 million.
Objective: The ETFS Physical Asian Gold Shares is designed to reflect the performance of the gold spot price minus fees.
Holdings: The trust holds physical gold bullion bars stored in secure vaults in Singapore under the custody of JP Morgan Chase.
What You Should Know:
- ETF Securities sponsors AGOL.
- AGOL has an expense ratio of 0.39%.
- The fund is up 12.21% over the last month and up 19.0% over the past three months.
- Gains on metals ETFs that hold bullion can be taxed at a higher rate than stocks.
- Gold is widely considered as a store of value, is a hedge against inflation, provides portfolio diversification and shows low correlation to equities.
- “AGOL is structured as a ‘grantor trust,’ so any long-term capital gains from an investment in AGOL will be taxed as a collectible, at a maximum rate of 28%,” according to Morningstar analyst Abraham Bailin.
The Latest news:
- Safe-haven demand for gold bullion held after the Sarkozy-Merkel meeting failed allay investor fears, reports Rujun Shen for Reuters.
- Additionally, Eurzone economic data showed that growth slowed in the second quarter, particularly in Germany and France.
- “Long-term investors are very hesitant to put their money into stocks right now,” commented Bob Haberkorn, senior market strategist at MF Global, in a WSJ report. “Currencies are being disasters across the board. People are looking for some place to preserve wealth.”
ETFS Physical Asian Gold Shares
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Max Chen contributed to this article.