Franklin Templeton today announced the launch of the Franklin Responsibly Sourced Gold ETF (NYSE Arca: FGLD). FGLD seeks to reflect the performance of the price of gold bullion, less the expense of fund operations, and is priced at 15 basis points. The shares will trade on NYSE Arca.
The fund defines “responsibly sourced gold” as London Good Delivery gold bullion bars that were refined on or after January 1, 2012, which have been refined in accordance with London Bullion Market Association’s (LBMA) Responsible Gold Guidance. The LBMA’s Responsible Gold Guidance establishes minimum requirements that are mandatory along the entire gold supply chain for all Good Delivery refiners wishing to trade with the London Bullion market, intended to ensure, among other things, that London Good Delivery gold is mined through verified supply chains that meet certain internationally recognized ethical standards.
“We are excited to offer FGLD as one of the most cost-effective gold ETFs in the market,” said David Mann, head of global exchange traded funds capital markets, in a news release. “We believe it’s a fantastic option for investors looking to add gold investments to their portfolios, offering a compelling way to participate in the physical gold market, with the added peace of mind of knowing that this gold is responsibly sourced.”
Commenting on the launch, Todd Mathias, head of U.S. ETF product strategy, said: “As we continue to thoughtfully build our ETF platform for the future, we are excited to be an industry leader with this listing. The LBMA’s Responsible Sourcing Program aims to protect the integrity of the global gold supply chain by requiring approved refiners to demonstrate their efforts to respect the environment globally and combat money laundering, terrorist financing and human rights abuses.”
Mathias added: “Many clients have considered gold’s historically low correlation to traditional stocks and bonds to be an important diversifier, and we expect that to continue. We are thrilled to bring an ESG-focused ETF in this asset class.”
Franklin Templeton’s ETF platform is designed to seek better client outcomes through a diverse product suite offered across asset classes and geographies. With over 50 ETFs offered in the U.S., the platform provides solutions for a range of market conditions and investment opportunities through active, smart beta, and passively managed ETFs. The firm’s U.S. ETF platform has over $12 billion in assets under management as of May 31.
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