Harvest Portfolio Groups is launching a 'Gold Giants' ETF which is tracking the price movements of 20 of the world's leading gold mining companies. The criteria selects companies depending on market capitalisation listed in North America, Australia and some European countries.
Solactive has launched the Solactive Global Gold Giants Index which is the underlying index for the Harvest Global Gold Giants Index ETF (HGGG).
Launching today on the Toronto Stock Exchange, HGGG has an expense ratio of 0.4 per cent. The ETF is targeted at investors who follow a defensive investment strategy with the possibility that the US dollar could weaken, according to Harvest Portfolios Group.
Michael Kovacs, President and CEO of Harvest Portfolios Group, said in a statement: The gold market and gold mining producers have been in a long decline lasting almost 7 years, bringing values down considerably from the highs of 2011/12. The Gold Giants have been able to take advantage of these prices to acquire or partner with smaller producers to expand their reserves and production."
Is Gold worth its weight in‚Ä¶itself?
The gold market is commonly used as a safe haven for when the US dollar struggles, and whilst Harvest Portfolios Group believe the USD is likely to weaken, Brexit plans can easily change this.
Gold ETPs had a strong 2018 but have struggled in the first two weeks of 2019. ETFS Physical Gold ETC saw significantly large returns in 2018 and 2016, offering 12.83 per cent and 30.96 per cent, respectively. However the ETC has had the worst returns of the year so far facing losses of -6.82 per cent. In fact the Gold ETPs which offered strong returns last year have struggled the most in 2019.
ETF YTD Returns 2018 Returns
iShares Physical Gold ETC 0.20 per cent 3.75 per cent
Invesco Physical Gold -0.13 per cent 3.11 per cent
Db Physical Gold ETC -0.70 per cent 5.15 per cent
ETFS Physical Swiss Gold -0.72 per cent 5.08 per cent
Gold Bullion Securities -2.13 per cent 6.01 per cent
ETFS Physical Gold -6.82 per cent 12.83 per cent