U.S. Global Investors Launches “GOAU” Gold Royalty ETF (NYSE: GOAU)
June 28 2017 - 10:06AM
U.S. Global Investors, a San Antonio, Texas-based
investment adviser, today launched the U.S. Global GO GOLD and
Precious Metal Miners ETF (NYSE Arca: GOAU). GOAU is a smart
factor, passively managed fund that is designed to track the U.S.
Global GO GOLD and Precious Metal Miners Index (GOAUX). GOAUX is
designed to capture the performance of companies engaged in the
production of precious metals either through active (mining or
production) or passive (owning royalties or production streams)
means.
Meeting continued demand in the precious metals
space, we believe GOAU differentiates itself from its gold ETF
competition by using a smart factor model that places special
emphasis on firms showing the highest revenue per employee. This
factor yields royalty and streaming companies, which we consider to
be the “smart money” of the metals and mining space.
Royalty companies serve as special financiers that
provide upfront capital to help fund producers’ exploration and
production projects. In return, they receive royalties on whatever
is produced or rights to a “stream.” A stream is an agreed-upon
amount of gold, silver or other precious metal at a fixed,
lower-than-market price.
With GOAU, investors will gain exposure to the
precious metals space, but with potentially less risk. Rather than
focusing solely on mining stocks with large market caps, GOAU seeks
high-quality, well-managed producers with a proven track record of
profitability, even when precious metals prices are down. Royalty
companies can possibly help investors manage many common risks
associated with traditional producers.
“U.S. Global Investors has a long-standing history
in the precious metals space; we are known for gold, and our
boots-on-the-ground knowledge of the industry is strong,” said
Frank Holmes, CEO and chief investment officer of U.S. Global
Investors. “Throughout our years of investing in the gold mining
space, we have found that royalty companies have tended to be
excellent allocators of capital, taking on very little debt and
deploying cash reserves only at the most opportune times.”
Royalty companies have a history of rewarding their
investors handsomely, increasing dividends at a faster pace than
the broader equity market, according to Dundee Capital Markets.
The U.S. Global GO GOLD and Precious Metal Miners
Index (GOAUX) uses a smart factor, rules-based model consisting of
common stocks listed on well-developed exchanges across the globe.
GOAUX seeks to identify companies with strong balance sheets and
attractive portfolios of active mines, among other factors.
Companies that rely primarily on debt to finance their business are
eliminated from the index.
GOAUX is rebalanced and reconstituted quarterly.
The expense ratio is 0.60%.
About U.S. Global Investors, Inc.
The story of U.S. Global Investors goes back more than 40 years
when it began as an investment club. Today, U.S. Global Investors,
Inc. (www.usfunds.com) is a registered investment adviser that
focuses on niche markets around the world. Headquartered in San
Antonio, Texas, the Company provides money management and other
services to U.S. Global Investors Funds, the U.S. Global Jets ETF
and other international clients.
# # # # #
Please consider carefully a fund’s investment objectives, risks,
charges and expenses. For this and other important information, to
obtain a hardcopy statutory and summary prospectus call
844.383.5387. Read it carefully before investing.
Investing involves risk, including the possible loss of
principal. Shares of any ETF are bought and sold at market price
(not NAV), may trade at a discount or premium to NAV and are not
individually redeemed from the fund. Brokerage commissions will
reduce returns. Because the fund concentrates its investments in
specific industries, the fund may be subject to greater risks and
fluctuations than a portfolio representing a broader range of
industries. The fund is non-diversified, meaning it may concentrate
more of its assets in a smaller number of issuers than a
diversified fund. The fund invests in foreign securities which
involve greater volatility and political, economic and currency
risks and differences in accounting methods. These risks are
greater for investments in emerging markets. The fund may invest in
the securities of smaller-capitalization companies, which may be
more volatile than funds that invest in larger, more established
companies. The performance of the fund may diverge from that of the
index. Because the fund may employ a representative sampling
strategy and may also invest in securities that are not included in
the index, the fund may experience tracking error to a greater
extent than a fund that seeks to replicate an index. The fund is
not actively managed and may be affected by a general decline in
market segments related to the index.
Gold, precious metals, and precious minerals funds may be
susceptible to adverse economic, political or regulatory
developments due to concentrating in a single theme. The prices of
gold, precious metals, and precious minerals are subject to
substantial price fluctuations over short periods of time and may
be affected by unpredicted international monetary and political
policies. We suggest investing no more than 5% to 10% of your
portfolio in these sectors.
Distributed by Quasar Distributors, LLC. U.S. Global Investors
is the investment adviser to JETS.
All opinions expressed and data provided are subject to change
without notice. Some of these opinions may not be appropriate to
every investor.
The U.S. Global GO GOLD and Precious Metal Miners Index is
designed to capture the performance of companies engaged in the
production of precious metals and minerals either through active
(mining or production) or passive (owning royalties or production
streams) means. Precious metals companies that rely primarily on
debt to finance their business are eliminated from the index. The
index uses a multi-factor, rules-based model and consists of common
stocks listed on well-developed exchanges across the globe. An
investment cannot be made directly in an index.
Attachments:
A photo accompanying this announcement is available at
http://www.globenewswire.com/NewsRoom/AttachmentNg/78ec38ed-d9cf-4b43-99c8-538893d6d7cb
Lisa Aston
U.S. Global Investors, Inc.
210.308.1222
laston@usfunds.com
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