Investment manager BlackRock Australia has expanded its offering of exchange-traded funds (ETF) with the launch of a new commodity ETF, offering investors affordable exposure to physical gold as a portfolio diversification tool and a potential hedge against inflation.
The iShares Physical Gold ETF (GLDN) is priced at 18 basis points and is backed by gold bullion securely held in vaults by BlackRock, with its price following the London Bullion Market Association (LBMA) gold rate.
BlackRock Australasia iShares ETF and index investments specialist Tamara Stats noted interest in the commodity among investors had grown recently as a result of the current inflationary environment and market outlook.
“When facing into periods of market uncertainty, investors have turned to assets such as gold, which has served as a diversifier to traditional investments such as equities and bonds. Global events this year have meant that the prevailing investment narrative has shifted, which has brought gold back to the front of investors’ minds,” Stats said.
“We are pleased to be able to offer Australian advisers and investors the opportunity to gain exposure to gold on the exchange.”
BlackRock Australasia head of wealth Chantal Giles explained the move to introduce the ETF was part of ongoing plans to provide Australian financial advisers and investors with convenient and cost-effective access to a diverse range of investment products.
“Our intent to launch GLDN reflects our commitment to lead the market in providing Australian advisers and investors with lower-cost investment solutions, together with a range of core index building blocks and other portfolio offerings,” Giles said.
“Gold has had a long history of remaining resilient during multiple business cycles and volatile market events, which has underpinned the appeal of the commodity over time. GLDN aims to make it easier and simpler for advisers and investors to gain exposure to physical gold via a low-cost structure.”
GLDN is expected to become available on the Australian Securities Exchange in the coming two weeks.