Australia’s official bullion mint has partnered with white-label platform Exchange Traded Concepts to launch a gold ETF on the NYSE.
The Perth Mint, owned by the Government of Western Australia, has listed a gold ETF on the NYSE.
The Perth Mint Physical Gold ETF (AAAU US) provides exposure to physical gold guaranteed by The Perth Mint, a wholly owned subsidiary of the Government of Western Australia.
The mint operates under an explicit government guarantee contained in the Gold Corporation Act 1987.
The ETF is backed by physical gold with a purity of at least 99.5% and secured within the mint’s network of central bank grade vaults in Western Australia.
It is the first ETF in the US to be sponsored by an official government-owned mint.
The fund comes with an expense ratio of 0.18%, matching the cost of the current cheapest gold ETF in the market – the SPDR Gold MiniShares Trust (GLDM US).
Each share of AAAU is priced to represent one-hundredth of an ounce of gold, potentially making the fund appeal to a broader client base through a lower entry point.
Innovatively, the fund pays all its expenses in gold ounces, which, according to The Perth Mint, minimizes potential tracking errors between the ETF and the gold price.
Another key feature of the fund is that investors can exchange their shares for delivery of physical gold. Shareholders can select from an extensive suite of bullion bars and coins available from mint.
Other funds to offer physical convertibility include the VanEck Merk Gold ETF (OUNZ US) in the US and the Gold Bullion Securities (GBSS LN) in the UK which exchanges security holdings for bullion coins (Sovereigns and Britannias) produced by The Royal Mint.
“With our one-of-a-kind government guarantee and shares that can be exchanged for physical gold of unquestionable quality, AAAU stands out in the ETF space,” said Richard Hayes, The Perth Mint’s Chief Executive Officer. “We believe investors will have greater confidence with the knowledge that their wealth is physically stored in one of the most secure central bank grade vaults in the southern hemisphere. AAAU is a truly unique offering for investors as it adds a new layer to hard asset investing in the United States.”
“In an increasingly uncertain and turbulent world, the case for gold remains compelling,” added Hayes. “Investing in gold through AAAU provides investors with an alternative means away from the traditional commercial financial institutions typically located in London and New York and also serves as a potential hedge against inflation, currency risk and stock market volatility.”