Fund can be hedged in USD, CHF and EURO
Credit Suisse has launched a gold ETF in USD that can be hedged in CHF and EUR. The Xmtch ETF on Gold is listed on the SIX Swiss Exchange.
Reportedly, the new Gold Xmtch ETF is Credit Suisse’s precious metals ETF. This fund invests in physical gold without using derivative instruments. The investment objective is to replicate the return from gold on the spot market. The bank has said that the two funds, Xmtch II on Gold hedged CHF and Xmtch II (CH) on Gold hedged EUR, also allow investors to invest in currency-hedged ETFs to avoid being subject to fluctuations in the exchange rate of the US dollar.
Thomas Merz, head of Xmtch marketing and distribution at Credit Suisse, said: “Gold ETFs are suitable for investors looking for a secure investment and a well-diversified portfolio. Investors can acquire a low-cost and flexible investment with a single transaction. Because the investment is fully backed by physical gold, there is no counter party risk as regards index replication.”