AAAU Profile
The Goldman Sachs Physical Gold ETF (AAAU), issued by Goldman Sachs, is an exchange-traded fund designed to provide investors with a cost-effective and convenient way to gain exposure to the gold spot price. Launched on July 26, 2018, AAAU is based on the LBMA Gold Price index and tracks the gold spot price, minus expenses and liabilities, through physical gold bars held in secure vaults located in the UK. The fund primarily holds London Good Delivery bars, meeting the strict specifications set by the London Bullion Market Association (LBMA).
AAAU operates by receiving gold deposited by Authorized Participants in exchange for the creation of baskets, which are large blocks of ETF shares. These Authorized Participants, typically financial institutions, can also surrender baskets in exchange for physical gold. This mechanism ensures that the ETF's share price closely tracks the market price of gold, providing investors with direct exposure to gold price movements without the complexities of purchasing and storing physical gold themselves.
The physical gold held by the trust has no numismatic value, meaning it is valued solely for its gold content rather than any collectible value. This ensures that the fund's assets are entirely focused on providing a pure play on gold prices. The gold bars are stored in high-security vaults in the United Kingdom, adhering to stringent safety and audit standards to ensure the integrity and security of the assets.
Goldman Sachs' management of AAAU highlights the firm's commitment to offering innovative investment products that meet the needs of modern investors. As part of Goldman Sachs' broader suite of ETF offerings, AAAU provides a transparent and efficient means of gaining exposure to gold, leveraging the firm's expertise in commodities and financial markets. The ETF's listing on major exchanges enhances its liquidity and accessibility, making it a practical choice for investors seeking to diversify their portfolios with a stable and historically valuable asset like gold.
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