Global X has unveiled a new gold bullion currency-hedged exchange-traded fund (ETF), designed to track the performance of gold priced in Australian dollars. The newly launched Global X Gold Bullion (Currency Hedged) ETF, trading under the Australian Securities Exchange (ASX) ticker GHLD, adds to the provider’s existing gold ETF offerings, which include the Global X Physical Gold ETF (GOLD) and the recently introduced Global X Gold Bullion ETF (GXLD).
The new fund aims to provide investors with protection against currency fluctuations, offering a cost-effective management fee of 0.35% per year. According to Justin Lin, an investment analyst at Global X, currency hedging has become a significant concern, particularly as the Reserve Bank of Australia (RBA) and the US Federal Reserve adopt differing interest rate policies.
“With the RBA and the US Federal Reserve on divergent interest rate paths for 2025, currency hedging is a growing issue for many investors,” Lin noted. “Investors are keen to stay exposed to gold amid volatility but are also wary of a potential rise in the Australian dollar. GHLD offers an effective solution, allowing them to hedge against currency risk while maintaining their gold exposure.”
Lin highlighted that recent years have been marked by economic uncertainty and persistent inflation, with gold emerging as a reliable asset for capital preservation and diversification. “Gold remains a key component of many Australian investment portfolios, particularly during periods of market volatility,” he added.
Despite some investors questioning whether gold has reached its peak with prices surpassing US$3000 per ounce, Lin emphasized that historical trends suggest further potential for growth. “Adjusted for inflation, gold’s all-time high stands at US$3459, reached in 1980. Given this, its current valuation could still be considered reasonable,” he explained. “If equity markets continue to face turbulence, we could see the gold price rise to US$3200.”
With the introduction of the GHLD ETF, Global X’s fund range now spans 42 products, including strategies focused on core, thematic, commodities, income, and cryptocurrency investments. The firm now manages over $9.5 billion in assets.
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