Using a smart beta approach, the U.S. Global Investors GO GOLD and Precious Metal Miners ETF (GOAU) launched in June as a way for investors to gain exposure to the precious metals space, reports ETF Advisor Magazine. In particular, GOAU focuses on mining royalty companies as its top holdings, seeking to mitigate some of the traditional risks associated with mining investing.
As the article explains, royalty companies provide upfront capital to miners to fund the producers’ exploration and production projects. The lender will then receive royalties on whatever precious metals are mined at a fixed, lower-than-market-price rate, known as a “stream.” To learn more about GOAU’s composition and investment strategy, read the full article here.
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Smart beta refers to investment strategies that emphasize the use of alternative weighting schemes to traditional market capitalization based indices.
Book value of an asset is the value at which the asset is carried on a balance sheet and calculated by taking the cost of an asset minus the accumulated depreciation.