Large-scale investment manager UBS Asset Management has introduced a new physically-backed CO2-compensated gold ETF (exchange-traded fund) in Europe. The ETF targets climate-conscious investors as it holds only gold bars that have been certified as CO2-neutral.
The exchange-traded fund has been listed on the SIX Swiss Exchange in US dollars.
UBS has partnered with precious metals business MKS PAMP, which has introduced large cast gold bars that are certified CO2-neutral by climate consultancy firm Carbon Trust.
The CO2-neutral certification means that the carbon emissions generated across the gold bars’ entire value chain – from mining to refining and vaulting – have been measured independently and there is a commitment to their reduction each year. The outstanding CO2 emissions are compensated by financing CO2 offset projects.
Relevant: Can Gold, Silver And Copper Help Reduce CO2 Emissions?
The CO2-neutral gold bars are produced in accordance with the responsible sourcing guidelines of the London Bullion Market Association.
The CO2-compensated gold ETF requires a management fee of 0.3 %. That means investors will have to pay a seven basis point premium to access the CO2-compensated gold bars compared to UBS’s existing physically-backed gold $1.7 billion ETF, which costs 0.23%.
Non-CO2-neutral gold exposure costs only 0.12% through the $14.9 billion iShares Physical Gold ETC, the $14.8 billion Invesco Physical Gold ETC, the $4.3 billion Amundi Physical Gold ETC, and the $570 million WisdomTree Core Physical Gold.
Gold ETFs have reached the highest values for over a year as there is global banking stress and subsequent higher demand for safe-haven assets.
Read more: Climate Change ETFs Found To Engage In Greenwashing
