ETFS Physical Gold (PHAU) is designed to offer investors a simple, cost-efficient and secure way to access the precious metals market. PHAU is intended to provide investors with a return equivalent to movements in the gold spot price less fees. PHAU is a transferable security that can be created or redeemed on demand (by market-makers). It trades on the Exchange just like an equity and its pricing and tracking operate similar to an Exchange Traded Fund. PHAU is backed by physical allocated metal held by the Custodian (HSBC Bank USA N.A.). All physical gold metal held with HSBC conforms to the London Bullion Market Association’s (LBMA) rules for Good Delivery.
Key features
- Tracks the price of gold, not a portfolio of equities
- Simple to trade on a major stock exchange
- Settled and held in ordinary brokerage accounts
- Transparent tracking with clear pricing
- Backed by physical, allocated metal
- Provides additional portfolio diversification
- Able to short, and margin eligible
About the pricing: The price of PHAU is based on the spot price of gold less fees. Daily price of PHAU = 0.10oz of Gold x Gold spot price less Management Fee. Details regarding the pricing calculations are available on www.etfsecurities.com/msl. All gold is priced off the LBMA’s specifications for Good Delivery, which is an internationally recognised and transparent benchmark for pricing physical gold.
Source: http://www.etfsecurities.com/en/updates/document_pdfs/ETFS_Physical_Gold_Fact_sheet.pdf
