Daily ETF Watch: Gartman Gold ETFs Live

Gartman’s ideas about the importance of owning gold in different currencies finds expression in four new ETFs.

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Reviewed by: Hung Tran
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Edited by: Hung Tran

Gartman’s ideas about the importance of owning gold in different currencies finds expression in four new ETFs.

 

AdvisorShares on Wed., Feb. 12 is launching four gold ETFs in a strategy that will be directly linked to Dennis Gartman’s ideas about gold investing. Specifically, each ETF will acquire gold in the respective currencies—yen, pound and euro—in an effort to provide investors with access to gold while reducing exposure to the dollar.

The main fund—the AdvisorShares International Gold ETF (GLDE)—will be a fund-of-funds strategy that will invest in other ETPs, including the other three gold ETF AdvisorShares is launching. It has an expense ratio of 1.52 percent, or $152 for every $10,000 invested.

Gold, which fell almost 30 percent in price last year, has rebounded a bit lately as stocks have pulled back amid concerns the global recovery might be losing steam just as the Federal Reserve is trimming its monetary stimulus.

Gold rose to the upper end of its recent trading band today as traders positioned themselves ahead of Janet Yellen’s comments on Tuesday. The yellow metal was last trading up by $8.14, or 0.64 percent, to $1,275.41, while silver added $0.07, or 0.32 percent, to $20.09.

The portfolio will consist primarily of long positions in these various ETFs, each costing 0.65 percent in expense ratio, or $65 for every $10,000 invested:

  • Gartman Gold/Yen ETFs (GYEN)
  • Gartman Gold/British Pound ETF (GGBP)
  • Gartman Gold/Euro ETF (GEUR)

The three currency-linked Gartman funds are each strategies that deliver a sort of “gold financed in a foreign currency” sort of exposure. Each ETF will acquire gold in the respective currencies—yen, pound and euro—in an effort to provide investors with access to gold while reducing exposure to the dollar.

(More) DB Fee Reductions

Effective Feb. 10, the db X-trackers MSCI Japan Hedged Equity Fund (DBJP | C-51) and the db X-trackers MSCI Germany Hedged Equity Fund (DBGR | B-49) will reduce their expense ratios from 0.50 percent, or $50 for every $10,000 invested, to 0.45 percent, or $45 for every $10,000 invested.

DBJP now costs less than its more established competitor, the WisdomTree Japan Hedged Equity Fund (DXJ | B-48), which has an expense ratio of 0.48 percent, or $48 for every $10,000 invested.

Also, DBGR’s new fee makes it cheaper than the WisdomTree Germany Hedged Equity ETF (DXGE), which has an expense ratio of 0.48 percent, or $48 for every $10,000 invested.

The latest reductions now brings these funds in line with the rest of DB’s developed market ETFs at a 45 basis points or less total expense ratio, including:

  • db X-trackers MSCI EAFE Hedged Equity Fund (DBEF | C-51), 0.35 percent, or $35 for every $10,000 invested
  • db X-trackers MSCI Europe Hedged Equity Fund (DBEU), 0.45 percent, or $45 for every $10,000 invested
  • db X-trackers MSCI United Kingdom Hedged Equity Fund (DBUK), 0.45 percent, or $45 for every $10,000 invested

 

Hung Tran is a former staff writer for etf.com.