ETFS Physical Gold (GOLD) getting split 10:1
ETF Securities, one of Australia’s largest ETF providers, is conducting a share split on its $2.6 billion ETFS Physical Gold product (ASX code: GOLD).
The split, which will be effective from 8 June, would split GOLD shares ten to one.
Owners of GOLD will receive 9 additional shares for each share they hold. Correspondingly, the metal entitlement of each share will be reduced by a factor of 10. Meaning there will be no net impact on the value of GOLD holders’ investment.
GOLD is currently trading above $230 per share, giving it one of the highest per share prices in the Australian ETP market.
The post-split price will be between $20 – $30, which is far more common for ETPs.
Evan Metcalf, head of product at ETF Securities, commented, “A number of investors have told us that they feel the share price of GOLD is prohibitively high. We are conducting this split in response to this feedback. The split will let smaller investor buy GOLD more freely. The current price per share – currently above $230 – can be challenging for smaller investors. The lower prices will also allow investors to manage their portfolios with greater precision.”
Marc Jocum, senior manager at Stockspot, commented, “Stockspot welcomes the share split. Since we started investing in GOLD in 2014, its price has risen from $130 to $240, which has made it difficult to buy in the perfect allocation for some smaller client portfolios. We see the split as beneficial for our clients as it should improve our trading and portfolio rebalancing as well as make GOLD accessible to more investors.”