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- Efficient trading for institutional investors and traders
- Competitive management fee for EUWAX Gold Core
- Traceability and carbon footprint transparency for EUWAX Gold Traceable
- HSBC as renowned partner for ETC administration, gold management and trading
Boerse Stuttgart Commodities has launched two new exchange-traded commodities (ETCs) backed by physical gold, expanding its established EUWAX Gold product family. Both ETCs are 100 percent physically backed, generally allow tax-free sale after a 12-month holding period, and are designed to appeal to a broader range of investors across Germany and Europe. Boerse Stuttgart Commodities is the issuing company within Boerse Stuttgart Group responsible for the business of issuing ETCs on precious metals.
EUWAX Gold Core (WKN EWG4CR) is aimed in particular at institutional investors, active traders and retail investors who want to remain flexible and adjust their positions at short notice if necessary. The ETC can be traded with a narrow spread and is particularly cost-efficient with a management fee of just 0.25 percent per year. Investors benefit from a product issued in Germany with attractive terms and efficient access to the physical gold market.
EUWAX Gold Traceable (WKN EWG4TR) is aimed in particular at investors who attach importance to the traceability of the origin of the gold and its carbon footprint. The spread and the management fee of 0.29 percent per year are low for a gold ETC that significantly enhances transparency for investors seeking more insight into the origin and environmental impact of their gold holdings.
"Gold is more in focus than ever among both retail and institutional investors. With EUWAX Gold Core and EUWAX Gold Traceable, we are offering tailored solutions for investors across Europe. Our new products are distributed to retail investors in Germany, Austria and Luxembourg. Coming from a Germany-based issuer, our gold ETCs combine outstanding tradability, competitive pricing, and full physical backing. Additionally, features like traceability and carbon footprint transparency address aspects that are becoming increasingly important for many investors," says Dierk Schaffer, Managing Director of Boerse Stuttgart Commodities GmbH.
EUWAX Gold Core and EUWAX Gold Traceable can now be traded at Boerse Stuttgart, on Xetra, on other stock exchanges in Germany and OTC. In trading, the UK-headquartered bank HSBC, the globally active liquidity provider Flow Traders and EUWAX AG as the broker of Boerse Stuttgart Group ensure narrow spreads and high liquidity. HSBC and Flow Traders not only act as market makers, but also as authorized participants for the gold ETCs.
For the administration, management and custody of the physical gold holdings, Boerse Stuttgart Commodities relies on HSBC – a globally leading partner in the field of gold ETCs. The combination of the expertise and market position of HSBC and Boerse Stuttgart Commodities makes it possible to offer attractive ETCs. In addition to HSBC, Boerse Stuttgart Commodities collaborates with other renowned partners to ensure secure and efficient processes relating to physical gold.
The two new gold ETCs are structured to ensure that banks and online brokers generally do not withhold tax upon sale. The purchase and sale of EUWAX Gold Core and EUWAX Gold Traceable are therefore treated like physical gold regarding tax. Capital gains are tax-free in Germany after a holding period of one year.
