TSE Mulling Listing Gold ETF in Spring

Tokyo, Aug. 27 (Jiji Press)–The Tokyo Stock Exchange is considering listing a gold exchange-traded fund backed by bullion in spring next year, informed sources said Monday.

It will be Japan’s first bullion-backed ETF.

Earlier this month, the Osaka Securities Exchange listed a gold ETF that invests not in gold itself but in securities backed by physical gold. It is not convertible to bullion.

The Tokyo bourse plans to set listing criteria for gold ETFs in accordance with Japan’s Financial Instruments and Exchange Law, set to be implemented in full at the end of September, the sources said. The law removes a ban on listing of ETFs that directly invests in physical commodities like gold.

Because gold prices are more stable than prices of stocks or bonds, the TSE’s gold ETF is expected to allure a wide range of investors.

Investment in gold ETFs also has a lower risk of asset management than conventional gold investment methods because bullion is kept by not investors themselves but professional management firms.

The TSE hopes the ETF listing will help attract institutional investors as well as individuals.

One trading unit is likely to be equivalent to tens of thousands of yen.END

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