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UBS AM unveils ‘carbon compensated’ gold ETF

TER 0.30%

Theo Andrew

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UBS Asset Management has launched a physically backed ‘carbon compensated’ gold ETF holding gold bars that have been certified as carbon neutral.

The UBS Carbon Compensated Gold ETF (GLDC02) is listed on the Six Swiss Exchange with a total expense ratio (TER) of 0.30%.

The asset manager has partnered with precious metal trading group MKS PAMP which has developed carbon-neutral gold bars as certified by the Carbon Trust.

As part of its certification, MKM PAMP has committed to reducing the greenhouse gas emissions of its carbon-neutral products by 1% a year across the entire value chain. The ETF will also use carbon offset certified by Verra.

The gold bars are also produced in line with the London Bullion Market Association’s (LMBA) responsible sourcing guidelines.

Last June, the Royal Mint renamed its gold exchange-traded commodity (ETC) to The Royal Mint Responsibly Sourced Physical Gold ETC (RMAU) after becoming backed by recycled gold.

The Royal Mint announced its first tranche of 50,000 ounces of surplus gold that has been refined into London Bullion Market Association (LBMA) good delivery bars and received $170m seed funding from Quintet Private Bank for its project to extract gold from used smartphones and laptops.

It comes as gold is up 9.2% in the month to 24 March, nearing all-time highs, as investors flock to safety as contagion fears loom over the global banking sector.

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