Investors can now access leveraged investment in pure gold bullion exposure on ASX.
Leading ETF provider BetaShares today announced the launch of a leveraged trading tool on the BetaShares Gold Bullion ETF (A$ Hedged).
The Macquarie QAU Mini Long (ASX Code: QAUKMA) allows investors to access leveraged exposure to gold without margin calls. For a fraction of the outlay of buying the ETF outright, investors can now access pure gold bullion exposure that is unaffected by currency movements, leveraged at 65% at inception.
Drew Corbett, Head of Investment Strategy for BetaShares said that as US and European debt issues weigh on global risk appetite, investors are seeking refuge in gold as a safe haven asset.
“Through the newly listed MINI, investors are now able take a view on the performance of gold with reduced levels of capital and without the risk of margin calls” he said.
“Previously, investors looking for leveraged exposure to gold would need to use complicated investment products such as futures or CFDs. The new MINI allows investors seeking leveraged exposure to gold to do so through the ASX,” says Corbett.
As the MINI has been constructed over the BetaShares Gold Bullion ETF, the only A$ hedged ETF listed on ASX, investors are able to obtain gold exposure with a built-in currency hedge, substantially removing the effect of currency fluctuations on the performance of their investment.
“While spot gold prices surged 70% in the period December 2008 through end June 2011 unhedged spot gold returned only 12% for Australian investors. This is because a rise in the value of the Australian dollar eliminated much of the benefit of the rising value of gold (which is priced in US dollars),” Corbett concluded.
The Macquarie MINI Long represents the third MINI listed over BetaShares’ ETFs after similar products were listed on the BetaShares Resources Sector ETF (QREKOA) and BetaShares Financials Sector ETF (QFNKOA).
