U.S. Global Investors Launches the U.S. Global GO GOLD and Precious Metal Miners ETF (TSX: GOGO)
September 29 2017 - 9:30AM
U.S. Global Investors, a San Antonio, Texas-based investment
adviser, and Galileo Global Equity Advisors Inc., a Toronto,
Ontario-based investment adviser, today launched the U.S. Global GO
GOLD and Precious Metal Miners ETF CAD (TSX: GOGO). GOGO 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.
In June of this year, U.S. Global Investors
launched the U.S. version of GOGO listed on the New York Stock
Exchange, with the ticker symbol GOAU. U.S. Global has a
long-standing history in the precious metals space, launching the
first no-load gold mutual fund in the U.S. That fund, now known as
the Gold and Precious Metals Fund (USERX), began in 1974. U.S.
Global also has a second precious metals fund, the World Precious
Minerals Fund (UNWPX), which began in 1985.
The firm has been honored with many Thomson Reuters
Lipper Fund Awards over the years. The most recent award was for
the U.S. Global Investors Gold and Precious Metals Fund (USERX)
which was the winner of two 2017 Lipper Awards in the Precious
Metals Equity Funds category for the three- and five-year periods.
In 2016, CEO and chief investment officer Frank Holmes and
portfolio manager Ralph Aldis received the award for Best Americas
Based Fund Manager by the Mining Journal.
Meeting continued demand in the precious metals
space, we believe GOGO 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.
“With the combined efforts of the Galileo team,
U.S. Global Investors is pleased to bring this product to Canadian
investors,” said Frank Holmes, CEO and chief investment officer of
U.S. Global Investors. “Our years of expertise in the gold mining
industry have given us a strong platform to work from, and we
believe that royalty companies offer a unique opportunity which we
are excited to share.”
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 GOGO, 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, GOGO 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.
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 for the ETF 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, U.S. Global ETFs and other
international clients.
About Galileo Global Equity Advisors
With over 25 years of experience specializing in the small and
micro-cap equity space, Galileo Global Equity Advisors has become
one of Canada’s premier boutique investment managers specializing
in smaller company investment strategies.
# # # # #
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.
The mutual funds mentioned in this press release are open to
U.S. investors only, and these references are not intended as an
offer of those securities to Canadian investors.
U.S. Global Investors is the portfolio advisor and manager of
the U.S. Global Canadian ETFs whereas Galileo is the Manager and
Trustee of the Canadian ETFs. U.S. Global owns a 65% interest in
Galileo.
Attachments:
A photo accompanying this announcement is available at
http://www.globenewswire.com/NewsRoom/AttachmentNg/610d38cc-fd39-4746-8862-136e5357055a
Lisa Aston
U.S. Global Investors, Inc.
210.308.1222
laston@usfunds.com
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