Gold rose to a record high of $1,983 a troy ounce this week based on plans by the United States government to pump in more stimulus packages to states and businesses affected by the surge in coronavirus virus and lockdowns, which currency analysts see weakening the global dependence on the green back currency.
In July alone a total of 27 listed companies in Nigeria stock exchange out of 165 spewed out gains of 0.88% gain in July as the earnings slumped over rising economic uncertainty caused by the coronavirus pandemic induced lockdown.
Listed in Nigeria Stock Exchange, December 2011, listed the NewGold ETF and has since grown to become Africa’s second largest market for ETFs with market capitalisation of about N7 billion.
This ETF’s equities has gained 60% this year, which is one of the best performing stocks in Nigeria.
It gained 17.4% last week alone and 27.5 in July month to date.
New Gold ETF bounced back from a YTD loss of 3.59% last year to end the first quarter of 2016 with a whopping 16.27% gain, according to analysis by fund data merchants, Quantitative Financial Analytics.
The ETF which tracks gold performance, recorded impressive gains in January (5.05%) and February (9.38%); and a modest gain of 1.19% in March 2016. Comparatively, Gold spot gained 16.06% within the same period, gaining 5.74% in January, 9.85% in February and losing .08% in March.
With that performance, New Gold ETF recorded an out performance of 0.21% over its bench mark index, gold. The ETF also out performed Gold in 2015 when it recorded -10.51% against -3.59% by the ETF.
Since 2012 when Quantitative Financial Analytics began to track the performance of the New Gold ETF and other mutual funds, the gold Etf has only underperformed Gold once, in 2012 when it gained 4.54% compared with a gain of 5.68% made by Gold in that year. Though the ETF made a massive loss of 26.26% in 2013, it did better than the 27.79% loss recorded by Gold.
Except for 2013 and 2014 when the ETF’s return diverged remarkably from Gold’s return performance, the New Gold ETF has been tracking its underlining index (Gold) relatively close with minimal tracking error.
The NewGold ETF is a “derivative instrument” issued by the NewGold Issuer, a South African Company.
The ETF is designed to track the spot gold price less fees and provides investors the opportunity of investing in the gold bullion market without the necessity of taking physical delivery of gold and sparing them the storage cost and other risks that go with possession of physical gold.