BlackRock Australia has announced its intent to launch the iShares Physical Gold ETF on the ASX under the ticker code GLDN.
According to the firm, the launch signifies BlackRock’s commitment to broadening the local iShares product suite, in addition to meeting the needs of Australian advisers and investors for low-cost portfolio construction and diversification opportunities.
Priced at 0.18 per cent, the fund will offer Australian investors the opportunity to gain exposure to physical gold through its ETF structure. BlackRock further suggested that investors generally seek to invest in gold as a diversifier in multi-asset portfolios and as a potential hedge against inflation.
Commenting on the upcoming launch, Chantal Giles, BlackRock Australasia’s head of wealth, said: “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.”
Ms Giles noted that gold has had a long history of remaining resilient during multiple business cycles and volatile market events, underpinning 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.”
Detailed within GLDNs product disclosure statement, BlackRock said the fund will implement its investment strategy through an investment in securities issued by the iShares Physical Gold ETC, which is an Irish-domiciled exchange-traded commodity that trades on the London Stock Exchange.
The securities issued by the underlying ETC are backed by physical gold bullion held by or on behalf of BlackRock in secured London vaults, according to the firm.
Tamara Stats, iShares ETF and index investments specialist at BlackRock Australasia, added: “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,” Ms Stats continued.
“We are pleased to be able to offer Australian advisers and investors the opportunity to gain exposure to gold on the exchange.”
This is the latest in a series of BlackRock ETF launches targeting Australian investors – last month, the firm unveiled its plans to launch the iShares US Treasury Bond (AUD Hedged) ETF on the ASX.
At the time of the announcement, Ms Giles said that Australian investors were increasingly using fixed income ETFs to help them navigate market uncertainty and take advantage of the highest yields seen in years.