Mr. Michael Kovacs reports
HARVEST ANNOUNCES LISTING OF HARVEST GLOBAL GOLD GIANTS INDEX ETF (HGGG)
Harvest Portfolios Group Inc. has completed the initial offering of Class A units of the Harvest Global Gold Giants Index ETF pursuant to a prospectus dated Jan. 7, 2019, filed with the securities regulatory authorities in all of the Canadian provinces and territories. The Class A units of the Harvest Global Gold Giants Index ETF will commence trading on the Toronto Stock Exchange today under the following ticker symbol HGGG.
The Harvest Global Gold Giants Index ETF seeks to replicate, to the extent reasonably possible and before fees and expenses, the performance of the Solactive Global Gold Giants Index TR. The Harvest Global Gold Giants Index ETF primarily invests in large gold mining issuers that are listed on a regulated stock exchange in North America, Australia or in certain European countries.
HGGG is a new defensive-focused ETF that invests in global gold companies and is targeted at advisers and investors who are concerned that we are in the late stage of an economic cycle and that the U.S. dollar may weaken.
"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," explains Michael Kovacs, president and chief executive officer of Harvest. "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."
HGGG will track 20 equally weighted positions of the Solactive Global Gold Giants Index TR. "The gold market and gold mining producers have been in a long decline lasting almost seven years bringing values down considerably from the highs of 2011/12, the Gold Giants have been able to take advantage of these prices to acquire or partner with smaller producers to expand their reserves and production. Large acquisitions such as Randgold by Barrick in late 2018 is another example of industry consolidation which is an indication of a market bottom," notes Mr. Kovacs. "This is a truly unique ETF as other products are either focused on holding bullion, or a combination of various market caps and bullion. Some ETFs have as many as 150 holdings. HGGG will only hold the top 20 and the largest market leaders of the industry based on market capitalization. With a competitive management fee of 40 basis points (0.40 per cent), HGGG provides a very affordable way to access investment in this mandate."
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