“Smart” ETF launched as gold stays steady over weak dollar

U.S. Global Investors CEO and chief investment officer Frank Holmes has set up a “smart ETF” that tracks a specialized or rules-based index to help hone in on high return players in the gold mining space. U.S. Global GO GOLD and Precious Metal Miners ETF (NYSEArca: GOAU) will appear on the New York stock exchange today.

Speaking to ETFtrends.com, Holmes credits the ETF as being an “intelligent product”. “We’ve been working on the methodology for the past three years. It uses a smart, quant-factor approach to scoop up the best names in the gold space.”

The ETF attempts to track the U.S. Global Go Gold and Precious Metal Miners Index. This follows companies that earn at least 50% of their aggregate revenue from precious metals, and designates different “tiers” of companies based on factors such as having a higher revenue per employee than the median for companies whose revenue per employees is in the top 20th percentile of the broader universe.

The gold price is continuing its recovery from Monday’s drop by riding on the back of a weak dollar and a sell-off of technology stocks, but is being hampered by strength in US equities and treasury bills.

Although lower than yesterday and down 0.6% this week, gold was at $1,246.17 at 09:30am and is maintaining a steady trajectory away from Monday’s flash crash.

Until a conclusive sentiment on monetary policy comes out of the European Central Bank Forum in Portugal, the main factor gold is relying on is a weak dollar. However it has only provided modest support for gold, and progress could easily be undone by a spike in alternative asset classes such as equities and treasury bills.

Notably, geopolitical uncertainty may see an increase as a market factor. Lukman Otunuga, research analyst at FXTM, said in a note Wednesday that gold is likely to remain supported “with the ongoing uncertainty of Brexit, political risk in Washington and jitters from depressed oil accelerating the flight to safety.” 

Photo by GotCredit

Link to this article: : http://www.goldmadesimplenews.com/gold/smart-etf-launched-as-gold-stays-steady-over-weak-dollar-13248/

Posted by on Jun 29 2017. Filed under Gold News, Mining. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

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