Global X has announced the imminent launch of a new exchange-traded fund (ETF) on the ASX, the Global X Gold Bullion (Currency Hedged) ETF (GHLD).
“GHLD invests in physical gold via the stock exchange and is currency hedged with the aim of eliminating the impact of currency movements between the US dollar and Australian dollar. Stay connected with us to discover more about the launch,” the ETF provider confirmed on LinkedIn on Thursday.
With gold being regarded as a “safe haven” asset during periods of volatility, Global X said that ETFs remain one of the most efficient and cost-effective ways to gain exposure to the commodity.
“At Global X, we’re setting a new benchmark in gold investing,” the firm said.
The currency-hedged ETF is poised to complement its existing suite of gold products, offering three ways to now invest in physical gold with the company.
Namely, the Global X Gold Bullion ETF (GXLD), launched in May 2024, is specifically designed for investors looking to hold gold over the longer-term as a core portfolio allocation.
It also has its flagship Global X Physical Gold (GOLD) ETF, the “largest and most liquid gold-backed exchange-traded product in Australia”, according to the firm.
Global X investment analyst Justin Lin wrote in a market update this week that currency-hedged ETFs provide a valuable way for investors to reduce the risk of currency fluctuations on their international investments.
“By understanding when and why to hedge, investors can better manage their portfolios and protect their returns,” Lin said, noting that currency hedging is especially useful in times of varying interest rates and economic conditions.
Speaking on the performance of gold, Lin last month also pointed out that physical gold ETFs already ranked as some of the top performing funds last year and expects further gains as global uncertainty pushes investors into the “safe haven asset".
“Notably, gold recently hit its all-time high on moderate volume, suggesting the rally was driven more by broad market flows rather than speculative buying pressure. Overall, gold appears to be establishing a higher floor for the next leg of its uptrend.”
With the current environment of mounting geopolitical risks and constant economic uncertainty, the investment strategist believes that gold’s role as a portfolio mainstay has “never been stronger”.
