Global investment manager VanEck will expand its range of exchange-traded funds (ETF) available to Australian investors with the launch of a gold bullion ETF that will allow investors to convert their holdings into physical gold at the mint.
The VanEck Gold Bullion ETF will list on the Australian Securities Exchange (ASX) on 7 December, using the code NUGG, and will be physically backed by gold bullion stored at The Perth Mint.
VanEck Asia-Pacific chief executive Arian Neiron said NUGG will be the 32nd ETF listed by the company on the ASX and is based on more than 50 years’ experience in gold investing, including gold equites and bullion, across ETFs and active funds.
The investment manager launched the first gold equity fund in the United States in 1968 and the first gold ETF in the US in 2006, and both funds are still in operation.
“NUGG’s launch is timely given the financial and political uncertainty the world faces. History has shown, when confidence erodes, or when there is extreme volatility in markets, investors turn to gold,” Neiron said.
“Investors are increasingly looking for transparency for their precious metals purchases. The gold bullion that physically backs NUGG is held in a vault at The Perth Mint and is sourced from Australian gold producers.
“A list of the allocated gold bars that make up the fund’s assets will be made available on our website daily.”
He said investors in the ETF will be able to withdraw their funds and receive physical gold issued by The Perth Mint.
