Credit Suisse launches first physically backed gold ETF

Credit Suisse is launching a gold ETF in USD that can be hedged in CHF, and EUR. As of today, the Xmtch ETF on Gold is listed on the SIX Swiss Exchange, as Credit Suisse, the Swiss ETF provider, adds another product to its range.

The new Gold Xmtch ETF is Credit Suisse's first precious metals ETF. This fund invests in physical gold without using derivative instruments. The investment objective is to replicate the return from gold on the spot market. The two funds Xmtch II on Gold hedged CHF and Xmtch II (CH) on Gold hedged EUR also allow investors to invest in currency-hedged ETFs to avoid being subject to fluctuations in the exchange rate of the US dollar.

"Gold ETFs are suitable for investors looking for a secure investment and a well-diversified portfolio. Investors can acquire a low-cost and flexible investment with a single transaction. Because the investment is fully backed by physical gold, there is no counterparty risk as regards index replication," says Thomas Merz, Head of Xmtch Marketing & Distribution at Credit Suisse.