OAKVILLE, ON, Jan. 15, 2019 /CNW/ - Harvest Portfolios Group Inc. ("Harvest") is pleased to announce the completion of the initial offering of Class A Units of the Harvest Global Gold Giants Index ETF pursuant to a prospectus dated January 07, 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 ("TSX") today under the following ticker symbol: HGGG:TSX.
The Harvest Global Gold Giants Index ETF ("HGGG") 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 advisors and investors who are concerned that we are in the late stage of an economic cycle and that the US dollar may weaken.
"As we move into late innings in a strong US economy and hot US growth, opportunities may arise to be more defensive in one's investment portfolio", explains Michael Kovacs, President and CEO 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 7 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 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%), HGGG provides a very affordable way to access investment in this mandate."
Founded in 2009, Harvest Portfolios Group Inc. is a Canadian Investment Fund Manager which offers an innovative suite of exchange traded funds, mutual funds and publicly-listed structured products designed to satisfy the long-term growth and income needs of investors. We pride ourselves in creating trusted investment solutions that meet the expectations of our investors.
You will usually pay brokerage fees to your dealer if you purchase or sell units of the Fund(s) on the TSX. If the units are purchased or sold on the TSX, investors may pay more than the current net asset value when buying units of the Fund(s) and may receive less than the current net asset value when selling them. There are ongoing fees and expenses associated with owning units of an investment fund. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated. An investment fund must prepare disclosure documents that contain key information about the fund. You can find more detailed information about the fund in these documents.
SOURCE Harvest Portfolios Group Inc.
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