Today is the first day of trading in the Claymore Gold Bullion ETF ( CGL). Its Canadas first physical gold bullion ETF, says Som Seif, President of Claymore Investments Inc. The gold is stored in the vaults of ScotiaMocatta, a division of the Bank of Nova Scotia.
Other features of the ETFinclude: hedged to the U.S. dollar and an annual management fee of 0.5% (includes all operating expenses, including custody fees). It is also eligible for the following registered plans: RRSP, RRIF, RESP, DPSP and TFSA.
The fund was previously a closed-end fund, first offered in May of 2009 to the public. It changed to an ETF according to a provision in the prospectus that stipulated automatic conversion whenever the fund traded at a discount greater than 2% to net asset value for 10 trading days.
Make sure to read the prospectusbefore investing.