NYSE:AGOL – Now You Can Buy Gold Stored in Singapore
ETFS Physical Asian Gold Shares (NYSE:AGOL), the latest offering from London-based ETF Securities, began trading last Friday (1/14/11). It will custody its physical gold bullion with JP Morgan Chase Bank in secure LBMA (London Bullion Market Association) approved vaults in Singapore.
Each share represents a direct interest in physical gold bullion. The initial quantity is 0.1 ounce of gold per share, which will be reduced over time to pay the 0.39% expense ratio.
ETFs based on physical gold have been very popular with investors, amassing nearly $65 billion in assets. Four ETFs backed by physical gold:
- SPDR Gold Shares (NYSE:GLD) launched in late 2004, making it the first ETF in this category. It is currently the largest gold bullion ETF with $58 billion in gold bars stored in London and has an expense ratio of 0.40%.
- iShares Gold Trust (NYSE:IAU) is currently the ETF with the lowest expense ratio at 0.25% and each share represents 0.01 ounces of gold (less expenses). It has more than $5 billion in assets and stores its gold in New York, Toronto, London, and other locations.
- ETFS Physical Swiss Gold Shares (NYSE:SGOL), launched in September 2009, are backed by 0.1 ounces of gold (less expenses of 0.39%) with the gold stored in Switzerland.
- ETFS Physical Asian Gold Shares (NYSE:AGOL) launched last week has an expense ratio of 0.39% and stores its gold in Singapore.
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