Xtrackers Physical Gold EUR Hedged ETCIndex, costs, backtest, listings and taxation

One email when new issuers, new metrics and new articles land. Double opt-in, zero spam, one-click unsubscribe.

The ETC securities provide you with exposure to gold, with a foreign exchange (FX) hedge to the Euro, without requiring you to acquire ownership in gold in the physical form. ETC securities can be purchased or sold on one or more stock exchanges.

Keep reading the KID section ▾

Each ETC security relates to a specific amount of gold, known as the metal entitlement per ETC security. The metal entitlement was initially 0.1 fine troy ounces (one fine troy ounce being 31.1035 grams) of gold and is reduced on a daily basis to reflect (i) the base fee; and (ii) the FX hedging fee percentage (together the fees). The relevant auction price for gold used in the ETC securities is as determined by the London Bullion Market Association (LBMA) at 15:00 local London time. The level of fees and the current metal entitlement is specified on www.etf.dws.com. The FX hedging fee percentage reflects a fee for the provision of the FX hedging element which attempts to reduce the difference between the currency in which the ETC securities are denominated (Euro) and the currency in which the gold is denominated (USD). Any gains or losses on the FX hedge will also be taken into account in the metal entitlement and will also affect the value of the ETC security. The issuer publishes a calculated daily value per security which equals the relevant gold price, multiplied with the relevant metal entitlement. This value does not equal the relevant secondary market price (for purchase or sale).

The issuer will seek to hold a sufficient amount of gold to cover its obligations under the ETC securities. On redemption, the metal agent (JPMorgan Chase Bank N.A.) will sell the gold and proceeds will be used to pay amounts due to security holders. Subject to any amounts paid to you due to early redemption, no amounts are payable under the ETC security prior to the maturity date.

On redemption, it is intended that the ETC security will become payable at an amount equal to the higher of (i) the weighted average prices at which the gold can be sold by the metal agent over a specified period prior to the redemption date multiplied by the metal entitlement on such redemption date and (ii) 10 percent of the issue price of the ETC security. However, since the ability to make such payment is dependent on whether there is sufficient proceeds from the sale of the gold available, security holders may receive no payment or less than 10 percent of the issue price in certain circumstances. ETC securities will not pay periodic interest. If the issuer decides to redeem ETC securities early it is possible that on redemption an interest amount may be added or subtracted to the redemption amount from the realisation of the gold.

The value per ETC security and the secondary market price of the ETC securities can go down as well as up throughout the term of the ETC securities. The ETC securities are not principal protected and you may lose some or all of your investment. Investors should be aware that upon investing, they will not take physical delivery of any gold.

More detailed information on the issuer of the ETC securities, such as the sales prospectus (in English and German languages) as well as the annual and semiannual report (in English language), can be obtained free of charge online at www.etf.dws.com. For more details about the ETC securities, please refer to the sales prospectus, which is available at www.etf.dws.com.

Intended Retail Investor This ETC product is intended for retail investors who:(i) are seeking a product offering exposure to the performance of the underlying asset(s); (ii) have a long-term investment horizon of at least 5 years; (iii) have basic knowledge and/or experience with similar financial products; and (iv) are prepared to accept a medium-high risk of loss (including up to complete loss) of invested capital.

this share class is hedged to EUR; the index the issuer places next to it in its documents is the unhedged, foreign-currency version. Subtracting one from the other does not measure replication quality: it measures the exchange rate. In a year when the currency moves 5%, “the TD” would come out near 5 points — a plausible-looking number, with decimals, and wrong.

Other sites publish that number. We would rather show one figure less than one figure wrong: the TD will return here the day we have the EUR-hedged index series, which the issuer does not publish today.

What tracking difference is and how we compute it →