GLDW Designed to Help Investors Access the Potential Benefits
of Gold and Counter the Historically Negative Correlation Between a
Strengthening US Dollar and Gold Prices
The World Gold Council, the market development organization for
the gold industry and State Street Global Advisors (SSGA), the
asset management business of State Street Corporation (NYSE:STT)
through its affiliate, State Street Global Markets, LLC, the
marketing agent for GLDW, today announced that the SPDR® Long
Dollar Gold Trust (GLDW) began trading on the NYSE Arca. GLDW seeks
to track the performance of the Solactive GLD® Long USD Gold Index,
less fund expenses.
“The price of gold and the US dollar have historically tended to
move in opposite directions,” said Nick Good, co-head of the Global
SPDR business at State Street Global Advisors. “By lessening the
dollar’s potential impact on gold, GLDW seeks to provide investors
the opportunity to realize the potential benefits of using gold as
a strategic portfolio diversifier, while offering the ability to
buffer against the potential adverse effects of a strong dollar on
gold.”
From December 31, 2013, to December 30, 2016, three years of
persistent dollar strength, gold priced in USD fell from $1,205/oz
to $1,146/oz, a 5 percent decline. However, when the effect of a
strengthening USD is removed, gold priced in non-US currencies,
such as the Euro, increased from €873/oz to €1,096/oz, a 25 percent
increase.1
The fund seeks to track the Solactive GLD® Long USD Gold Index,
which combines both a long position in physical gold and long
dollar exposure against a basket of non-US currencies.2 Performance
of the US dollar against this currency basket is expected to
increase or decrease the amount of gold held by GLDW. GLDW holds
physical gold in the form of 400 ounce London Good Delivery bars
stored in the Custodian’s London vault, except when GLDW’s physical
gold has been allocated in the vault of a subcustodian solely for
temporary custody and safekeeping.
“GLDW is the first ETF listed in the US backed by physical gold
that is designed to hedge the movement of gold against the U.S.
dollar,” said Joseph Cavatoni, Principal Executive Officer of
GLDW’s sponsor, and Managing Director USA and ETFs, World Gold
Council.
“For investors and advisors incorporating currency movements
into their investment thesis, the SPDR® Long Dollar Gold Trust
provides a convenient vehicle to lessen the potential impact of the
dollar on gold prices by creating the economic effect of owning
gold with a basket of non-US currencies. Together, GLDW and GLD®
may allow investors to enjoy the diversification benefits of
holding gold in either strong or weak dollar environments.”
In November 2004, the World Gold Council through a US subsidiary
and State Street Global Advisors launched SPDR® Gold Shares (GLD®),
the first US traded gold ETF and the first US-listed ETF backed by
a physical asset. GLD® attracted more than $1 billion in assets in
its first three trading days. Listed on the NYSE Arca, in addition
to exchanges in Singapore, Tokyo, Hong Kong and Mexico, GLD®
remains the largest gold ETF with approximately $30.6 billion3 in
assets under management backed by physical gold bullion.
The net and gross expense ratio for GLDW is 0.50 percent.
About State Street Global Advisors
For nearly four decades, State Street Global Advisors has been
committed to helping financial professionals and those who rely on
them achieve their investment objectives. We partner with
institutions and financial professionals to help them reach their
goals through a rigorous, research-driven process spanning both
active and index disciplines. We take pride in working closely with
our clients to develop precise investment strategies, including our
pioneering family of SPDR ETFs. With trillions* in assets under
management, our scale and global footprint provide access to
markets and asset classes, and allow us to deliver expert insights
and investment solutions.
State Street Global Advisors is the investment management arm of
State Street Corporation.
*Assets under management were $2.4 trillion as of December
31, 2016. *AUM includes the assets of the SPDR® Gold ETF
(approximately $30.6 billion as of December 31, 2016), for which
State Street Global Markets, LLC, an affiliate of SSgA, serves as
the distribution agent.
About World Gold Council
The World Gold Council is the market development organisation
for the gold industry. Our purpose is to stimulate and sustain
demand for gold, provide industry leadership and be the global
authority on the gold market. We focus on policy-related issues,
market infrastructure, central banks and investment markets.
We develop gold-backed solutions, together with industry
partners, that create structural shifts in demand across key market
sectors. We provide insights into the international gold markets,
helping people to understand the wealth preservation qualities of
gold.
The membership of the World Gold Council includes the world’s
leading and most forward thinking gold mining companies.
Important risk information
Investing involves risk, and you could lose money on an
investment in each of SPDR® Gold Shares Trust (“GLD®”) and SPDR®
Long Dollar Gold Trust (“GLDW”) (together, the “Funds”).
Commodities and commodity-index linked securities may be
affected by changes in overall market movements, changes in
interest rates, and other factors such as weather, disease,
embargoes, or political and regulatory developments, as well as
trading activity of speculators and arbitrageurs in the underlying
commodities.
GLDW is subject to regulation under the Commodity Exchange Act
of 1936 (the “CEA”). U.S. regulation of swap agreements is rapidly
changing and is subject to further regulatory developments which
could be adverse to GLDW. GLDW’s swap agreements will be subject to
counterparty risk and liquidity risk.
Currency exchange rates between the U.S. dollar and non-U.S.
currencies may fluctuate significantly over short periods of time
and may cause the value of GLDW’s investments to decline.
GLDW is a passive investment vehicle that is designed to track
the Index. GLDW’s performance may deviate from changes in the
levels of its Index (i.e., create “tracking error” between GLDW and
the Index) for a number of reasons, such as the fees and expenses
of GLDW, which are not accounted for by the Index.
Frequent trading of ETFs could significantly increase
commissions and other costs such that they may offset any savings
from low fees or costs.
Diversification does not ensure a profit or guarantee against
loss.
Investing in commodities entails significant risk and is not
appropriate for all investors.
Important Information Relating to SPDR® Gold Shares Trust
(“GLD ®”) and SPDR® Long Dollar Gold Trust (“GLDW”):
The SPDR® Gold Shares Trust (“GLD®”) and the SPDR® Long
Dollar Gold Trust (“GLDW”) have each filed a registration statement
(including a prospectus) with the Securities and Exchange
Commission (“SEC”) for the offerings to which this communication
relates. GLDW has also filed the prospectus with the National
Futures Association. Before you invest, you should read the
prospectus in the registration statement and other documents each
Fund has filed with the SEC for more complete information about
each Fund and these offerings. You may get these documents for free
by visiting EDGAR on the SEC website at sec.gov or by
visiting spdrgoldshares.com. Alternatively, the Funds
or any authorized participant will arrange to send you the
prospectus if you request it by calling 866.320.4053.
Neither Fund is an investment company registered under the
Investment Company Act of 1940 (the “1940 Act”). As a result,
shareholders of each Fund do not have the protections associated
with ownership of shares in an investment company registered under
the 1940 Act. GLD is not subject to regulation under the CEA. As a
result, shareholders of GLD do not have the protections afforded by
the CEA.
Shares of each Fund trade like stocks, are subject to investment
risk and will fluctuate in market value.
The value of GLD shares relates directly to the value of the
gold held by GLD (less its expenses). Fluctuations in the price of
gold could materially and adversely affect an investment in the
shares. The price received upon the sale of the shares, which trade
at market price, may be more or less than the value of the gold
represented by them.
GLDW shares trade like stocks, are subject to investment risk
and will fluctuate in market value. The value of GLDW shares
relates directly to the value of the gold held by GLDW (less its
expenses) and the value of a basket (“FX Basket”) comprising the
euro, Japanese yen, British pound sterling, Canadian dollar,
Swedish krona and Swiss franc (“Reference Currencies”) against the
U.S. dollar. A decline in the price of gold and/or an increase in
the value of the Reference Currencies comprising the FX basket
against the U.S. dollar could materially and adversely affect an
investment in the shares. The price received upon the sale of the
shares, which trade at market price, may be more or less than the
value of the gold and the price of each Reference Currency against
the U.S. dollar represented by them. GLDW does not generate any
income, and as GLDW regularly sells gold to pay for its ongoing
expenses, the amount of gold represented by each Share will decline
over time to that extent. Investing involves risk, and you could
lose money on an investment in GLDW.
Neither Fund generates any income, and as each Fund regularly
sells gold to pay for its ongoing expenses, the amount of gold
represented by each Fund share will decline over time to that
extent. Investing involves risk, and you could lose money on an
investment in each Fund.
Please see each Fund’s prospectus for a detailed discussion of
the risks of investing in each Fund’s shares. The GLD prospectus is
available by clicking here, and the GLDW prospectus is available by
clicking here.
The World Gold Council name and logo are a registered trademark
and used with the permission of the World Gold Council pursuant to
a license agreement. The World Gold Council in not responsible for
the content of, and is not liable for the use of or reliance on,
this material. World Gold Council is an affiliate of GLDW's
Sponsor.
SPDR® is a registered trademark of Standard & Poor’s
Financial Services LLC (“SPFS”) and has been sublicensed by S&P
Dow Jones Indices LLC (“SPDJI” and together with its affiliates and
SPFS, “S&P”) for use by State Street Global Advisors. No
financial product offered by State Street Global Advisors, a
division of State Street Bank and Trust Company, or its affiliates
is sponsored, endorsed, sold or promoted by S&P. S&P makes
no representation regarding the advisability of investing in such
product(s) nor does S&P have any liability in relation
thereto.
Important Information Relating to Solactive GLD® Long USD Gold
Index:
GLDW is not sponsored, promoted, sold or supported in any other
manner by Solactive AG nor does Solactive AG offer any express or
implicit guarantee or assurance either with regard to the results
of using the Index and/or Index trademark or the Index value at any
time or in any other respect. The Index is calculated and published
by Solactive AG. Solactive AG uses its best efforts to ensure that
the Index is calculated correctly. Irrespective of its obligations
towards GLDW, Solactive AG has no obligation to point out errors in
the Index to third parties including but not limited to investors
in and/or financial intermediaries transacting in or with GLDW.
Neither publication of the Index by Solactive AG nor the licensing
of the Index or Index trademark for the purpose of use in
connection with GLDW constitutes a recommendation by Solactive AG
to invest capital in GLDW nor does it in any way represent an
assurance or opinion of Solactive AG with regard to any investment
in GLDW.
For more information, please contact the Marketing Agent for
GLD and GLDW: State Street Global Markets, LLC, One Lincoln Street,
Boston, MA, 02111;T: +1 866 320 4053
spdrgoldshares.com
© 2017 State Street Corporation. All Rights Reserved.State
Street Global Advisors, One Lincoln Street, Boston, MA 02111
Not FDIC Insured - No Bank Guarantee - May Lose Value
CORP-2585
Exp. Date: 1/30/18
1 Source: Bloomberg Finance L.P., SSGA.2 The currency basket of
GLDW is comprised of the euro, Japanese yen, British pound,
Canadian Dollar, Swedish krona and Swiss franc.3 Bloomberg as of
12/31/16
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170130005718/en/
State Street CorporationAndrew Hopkins, +1
617-664-2422Ahopkins2@StateStreet.com
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