A Golden Opportunity for Diversification
For qualified investors only

A Golden Opportunity for Diversification

The last few weeks of the first quarter of 2020 have been exceptional: the driving forces and implications of the current environment due to COVID-19 are unprecedented, and many investors wonder how to diversify their portfolio in an environment, limited by a continued trend of low or negative yields in global bond markets. So, how to proceed?

Our research shows that the consideration of alternative allocations in portfolio is vital in order to increase resiliency and build diversification in this challenging environment.

One potential alternative allocation to consider is Gold.

Why Gold?

Gold has been widely used as a “safe-haven” asset for decades, and arguably more liquid, transparent, and lower cost than many other alternative strategies. The correlations between gold and global equities have remained low, giving rise to its ability to act as a strategic diversifier in portfolios:
Why Gold
The current central bank policy and fiscal deficit are here to stay in this extraordinary environment, and these factors also support the use of gold as a strategic allocat...
Why Gold
Even though 2019 was the first year since 2008 that gold mined production fell year-on year, it was also the tenth consecutive year of net positive central bank purchases, ...
Why Gold
When turning to gold equities, gold prices have strengthened whilst companies’ costs have generally been stable to down, so this could mean that the sector enjoys strong ea...
Why Gold
Gold companies also appear to remain focused on shareholder returns, with two major gold producers recently announcing dividend increases and one announcing a buyback.

Ways to invest in Gold with BlackRock

BlackRock’s wide range of products offers investors with three types of vehicles to achieve gold exposure:
1. Active gold equity fund: BGF World Gold Fund
2. Physical gold products: iShares Physical Gold ETC or iShares Gold ETF (CH)
3. Gold equity exchange-traded-fund: iShares Gold Producers UCITS ETF

Investors can add gold price exposure to their portfolios through incorporating one or more of these funds. BlackRock has a long-history of offering gold-related products, with its oldest active gold equity fund launched in 1988, with the fund officially becoming part of BlackRock after the merger with Merrill Lynch Investment Managers in 2006. Investors typically turn to BlackRock based on: our mission and principles (including our commitment to clients), our people and in-house expertise and our world-leading risk and fund-management capabilities.

Why invest in BGF World Gold Fund?

Active gold equity exposure
Active gold equity exposure
The Fund provides focused, active exposure to gold equities, which typically exhibit a beta above one to moves in the gold price.
Experienced team
Experienced team
Managed by the BlackRock Natural Resources active equity team, led by Evy Hambro and Tom Holl, who have been managing gold portfolios since it was formed in 1991.
Quality bias
Quality bias
The Fund focuses on companies with stronger-than- average balance sheets and lower-than-average costs, which typically helps to reduce the volatility associated with invest...
E.S.G. embedded
E.S.G. embedded
E.S.G. considerations play a major role in the team’s stock selection process.

Why invest in iShares Gold ETFs?

European ETP Leader
European ETP Leader
BlackRock is Europe's largest physical gold manager with over USD 9bn in Gold ETPs, of which over USD 1bn in Swiss domiciled iShares Gold ETFs.
All Physical
All Physical
The iShares Gold ETFs (CH) are 100% secured by physical gold bullions held in a segregated and allocated vaults at Credit Suisse in Switzerland.
Multiple Currency
Multiple Currency
Available in USD and hedged in CHF and EUR.
Cost-effective
Cost-effective
TER of 19bps in USD respectively 22bps for CHF- and EUR-hedged. Swiss stamp duty (7.5 bps) for ETFs domiciled in Switzerland.

Why invest in iShares Physical Gold ETC?

European ETP Leader
European ETP Leader
BlackRock is Europe's largest physical gold manager with over USD 9bn in Gold ETPs, of which over USD 8bn in the iShares Physical Gold ETC.
All Physical
All Physical
The iShares Physical Gold ETC is 100% secured by physical gold bullions held in a segregated and allocated vault at J.P. Morgan in London.
Most Liquid
Most Liquid
$31mn average daily traded volume on the London Stock Exchange in 2019 – highest for all Gold ETCs traded in Europe.
Cost-effective
Cost-effective
TER of 19bps.

Risk Warnings

Capital at risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. Investors may not get back the amount originally invested.

Past performance is not a reliable indicator of current or future results and should not be the sole factor of consideration when selecting a product or strategy.

Changes in the rates of exchange between currencies may cause the value of investments to diminish or increase. Fluctuation may be particularly marked in the case of a higher volatility fund and the value of an investment may fall suddenly and substantially. Levels and basis of taxation may change from time to time.

BlackRock has not considered the suitability of this investment against your individual needs and risk tolerance. The data displayed provides summary information. Investment should be made on the basis of the relevant Prospectus which is available from the manager.

In respect of the products mentioned this document is intended for information purposes only and does not constitute investment advice or an offer to sell or a solicitation of an offer to buy the securities described within. This document may not be distributed without authorisation from BlackRock..

Product Risks

iShares Gold CHF Hedged ETF (CH)

Counterparty Risk, Currency Hedging Risk, Gold Risk, Investment in Gold Risk, Liquidity Risk

iShares Gold ETF (CH)

Counterparty Risk, Gold Risk, Investment in Gold Risk, Liquidity Risk

iShares Gold EUR Hedged ETF (CH)

Counterparty Risk, Currency Hedging Risk, Gold Risk, Investment in Gold Risk, Liquidity Risk

BGF World Gold Fund

Concentration Risk, Counterparty Risk, Equity risk, Investments in Mining Securities, Liquidity Risk

iShares Gold Producers UCITS ETF USD (Acc)

Concentration Risk, Counterparty Risk, Equity Risk, Investments in Mining Securities Risk, Liquidity Risk