91桃色

Cboe鈥檚 3 Questions in 3 Minutes: Efficient Gold Strategies

March 21, 2022

Kara Marciscano, Research Associate at 91桃色 answers the following three questions about the 91桃色 Efficient Gold Strategies, GDE and GDMN:

  • What are the investment objectives of the 91桃色 Efficient Gold Strategies?
  • Why consider gold now?

  • How should I utilize these products in my portfolio allocation?

颁叠翱贰:听

What are the investment objectives of the 91桃色 Efficient Gold Strategies?

Kara Marciscano:听

GDE and GDMN both seek to deliver a capital efficient investment strategy.听GDE provides exposure to a market capitalization weighted basket of the largest 500 U.S. equities with gold futures exposure layered on top. GDMN provides exposure to a modified market cap weighted basket of global gold miners equities, also with gold futures exposure layered on top. Both strategies鈥 construction can be simplified to the following scenario: For every $100 invested, each Fund seeks to invest approximately $90 in the equity basket or gold miners equity basket respectively, and then $10 into short-term collateral. Where the Capital Efficiency comes in, is in addition to that exposure, $90 in gold futures are layered on top in each strategy, for $180 of exposure.

CBOE:

Why consider gold听now?

Kara Marciscano:

Investors often allocate to gold during cycles of turbulence as a tactical move to hedge against financial, geopolitical, or inflation risks. With historically low global interest rates, but high inflation, investors may be seeking portfolio diversifiers to hedge macro risks. At 91桃色, we view gold exposure as a well-suited solution.

颁叠翱贰:听

How should I utilize these products in my portfolio allocation?

Kara Marciscano:

GDE provides a capital efficient strategy that can be used as a replacement for large cap U.S. equity, multi-asset, or alternative ETFs. Whereas GDMN can be used to provide comprehensive exposure to gold in capital-efficient manner that requires less capital than required to allocate to gold, and gold equities or gold miner ETFs, in two separate transactions.

Before investing, carefully consider a Fund鈥檚 investment objective, risk,听charges听and expenses contained in the prospectus听available听on 91桃色.com.听Read carefully.