State Street Global Advisors, the assessment management business of the State Street Corporation, along with the World Gold Council have announced that all SPDR Gold Shares, which are already trading on the Singapore Exchange (SGX), will start to trade in a secondary currency of the Singapore Dollar (SGD) from June 30.
SPDR Gold Shares is an exchange traded fund (ETF) launched by the World Gold Council and State Street Global Advisors that tracks the price of gold bullions. Currently, SPDR Gold Shares is the largest ETF backed by physical gold.
SPDR Gold Shares is the only gold ETF listed on the SGX. This ETF was the most traded ETF of the SGX having a trading volume of $1.63 billion.
On this, SPDR Gold Shares can now be traded in both US dollars (USD) and SGD. Because of this, Singaporean investors will be able to access SPDR shares in their own local currency.
"The option to trade SPDR Gold Shares in both SGD and USD offers Singapore investors even more flexibility to access gold as they increasingly seek diversification opportunities amid continued volatility in the stock and bond markets,” said Meaghan Victor, head of SPDR Asia Pacific distribution at State Street Global Advisors.
SPDR Gold Shares will have an expense ratio of 0.40% per annum and will be a convenient and cost-efficient way for investors to gain access to the gold market.
"The option to trade SPDR Gold Shares in both SGD and USD offers Singapore investors even more flexibility to access gold as they increasingly seek diversification opportunities amid continued volatility in the stock and bond markets,” says Meaghan Victor, head of SPDR Asia Pacific distribution at State Street Global Advisors.
"Gold has a strong track record as both a hedge and a source of risk-adjusted returns,” adds Joseph Cavatoni, Principal Executive Officer of the SPDR® Gold Shares sponsor and Head of Americas and Global Sales for the World Gold Council.
“With the newly added SGD option, depending on their objectives, investors can now strategically either access SPDR Gold Shares denominated in USD to mitigate the risk of local currency depreciation or in SGD to capture not only the potential gain in gold price, but also the appreciation of USD against SGD."
Photo: State Street Global Advisors
