SPDR Gold Shares to start trading in Singapore dollars on June 30

INVESTORS in Singapore can access SPDR Gold Shares in local currency when the exchange-traded fund (ETF) starts trading in a secondary currency on June 30 under the stock code GSD.

The fund, which is backed by physical gold and tracks the price of the yellow metal, first listed in Singapore in 2006 in US dollars under the stock code O87. It was the most traded ETF on the Singapore Exchange in 2020, with a trading volume of S$1.63 billion.

The ETF has an expense ratio of 0.4 per cent per annum and allows investors to access the gold market in a more cost-efficient manner compared to getting physical bullion, State Street Global Advisors said in a press statement on Tuesday.

"Gold has a strong track record as both a hedge and a source of risk-adjusted returns," said Joseph Cavatoni, principal executive officer of the SPDR Gold Shares sponsor. He is also the head of Americas and global sales for the World Gold Council - which together with State Street launched the SPDR Gold Shares in the US in 2004.

Meaghan Victor, head of SPDR Asia Pacific distribution at State Street Global Advisors, said the option to trade in both US and Singapore dollars offers local investors more flexibility to access gold as they increasingly seek diversification opportunities amid continued volatility in the stock and bond markets.

The SPDR Gold Shares ETF was trading 0.2 per cent or US$0.30 lower at US$166.70 as at 10.38am on Wednesday.

READ MORE: SPDR Gold Shares is most traded SGX ETF