VTB launches an exchange-traded fund to invest in gold


VTB Capital Investments has launched a new exchange-traded share investment fund to generate potential revenue linked to the movement of gold prices. Shares in the VTB — gold exchange-traded fund will be traded on the Moscow stock exchange. At the first stage, the share price will be one ruble in its dollar equivalent and fund commissions will not exceed 0.5% per annum.

The fund’s investment strategy will follow the price of gold on the London stock exchange. The basic asset of the fund is the exchange-traded fund of the commodity market SPDR Gold Shares, which is fully secured by physical gold. Buying and selling shares of the VTB — gold exchange-traded fund can take place fully online, including via the “VTB My Investments” mobile app.

“Gold is one of the most steadily growing assets in terms of price in recent decades. At the beginning of 2000, a troy ounce cost about $ 285 and the price has now grown to levels above $ 1,700. Monetary policy from the world central banks in the context of slowing economies due to the pandemic may well support a further growing trend for gold. With zero interest rates, the coupon yield on bonds has become very low. Many developed countries have negative real interest rates. In such conditions, gold becomes a universal tool for saving money. Having at least 5% an investment portfolio in gold seems a balanced decision in the current climate. In order to make it easier for our clients to invest in gold, we have launched an exchange-traded fund in addition to an open mutual fund. We are confident that this product will be popular as online investing continues to grow and with the cost of a share being just one ruble this tool will be available to absolutely any investor.” said Vladimir Potapov, Chief Executive Officer of VTB Capital Investments, senior Vice President, head of VTB’s Brokerage Services Department.

VTB — gold exchange-traded fund will complement the line of exchange-traded funds of VTB Capital Investments, which is the broadest in the Russian market. It will be the eighth such VTB Fund. A total of 28 funds are now managed by VTB Capital Asset Management.