Russia"s First Gold ETF Begins Trading On Moscow Exchange

17/10/2013

Shares in Russia"s first ETF on physical gold began trading on Moscow Exchange on 17 October. The fund tracks the London Gold Fixing Price, which is set in USD every trading day. The fund"s shares are denominated in USD, while trading on the Moscow Exchange will be in RUB.

The fund is the first regulated ETF on physical gold available in both the EU and Russia. The fund"s assets are in the form of bullion stored at a facility in London.

Moscow Exchange CEO Alexander Afanasiev said, "We believe ETFs are a strong addition to the Russian market as they offer participants the opportunity to form diversified investment strategies without investing into a large number of securities or commodities. The first exchange-traded fund listed in Moscow, a Russian corporate Eurobond ETF, began trading this spring, offering interesting diversification opportunities to market participants. Today we present the second ETF to be traded in Russia, a gold ETF. This instrument offers an attractive alternative to banking products and metals accounts. The development of trading in precious metals and related products is a promising new direction for our group"s business; we plan to launch spot trading in gold and silver this month".

Management company FinEx Plus"s President and General Director Yevgenny Kovalishin added "An important element of ETF funds as exchange instruments is their momentary liquidity. The investor can at any moment sell or buy our Finex ETF shares on physical gold, having received access to the global market for standard gold bars. The ETF lowers the entry point substantially, providing access to markets such as gold or Eurobonds even for retail investors. Our next goal is to expand the range of ETFs to basic asset classes of interest to local and foreign investors, specifically by adding indices of shares of foreign companies".

FinEx ETF is a market participant specialising in ETFs, and is wholly owned by FinEx Group, a group offering investment products with active and passive strategies. FinEx Group manages more than USD 1 bln (as of 31 December 2012). FinEx ETF specialises in investments and work with investors in emerging markets.