Oakville, Ont.-based Harvest Portfolios Group Inc. has completed an initial offering of Class A Units of the Harvest Global Gold Giants Index ETF, which will begin trading on the Toronto Stock Exchange Tuesday under the ticker symbol HGGG, the investment manager has announced.
The ETF invests primarily in large gold-mining issuers that are listed on a regulated stock exchange in North America, Australia or certain European countries.
“As we move into late innings in a strong U.S. economy and hot U.S. growth, opportunities may arise to be more defensive in one’s investment portfolio,” Michael Kovacs, president and CEO of Harvest, says in a statement. “We have been watching the gold market for some time, especially gold market shares. They have been in a bear market since 2012 which is why we see considerable value in them now. HGGG will invest in the largest global gold producers to benefit from margin expansion as gold prices increase. We believe these companies are profitable at current gold prices and have a positive earnings and price correlation as the metal rises in value. HGGG allows an investor to diversify across top industry names and reduce single stock risk that has become more evident in recent markets.”
The ETF tracks the Solactive Global Gold Giants Index from Frankfurt-based index provider Solactive.