The NewGold Exchange Traded Fund (ETF) offers the opportunity to invest in gold bullion, as it tracks the Rand price of gold. The debentures are fully backed by physical gold bullion with each debenture approximately equivalent to 1/100th of a fine troy ounce of gold bullion, which is held with a secure depository on behalf of investors at an annual fee of 0.4% of it's value.
Classified as a domestic investment, NewGold ETF was the first of its kind in South Africa to allow institutional and retail investors to securely,
easily and conveniently invest in gold bullion, with the added benefit of low management fee. At launch, it was the third commodity ETF in the world and was,
until recently, the only commodity ETF on the JSE.
NewGold debentures are listed on the Johannesburg Stock Exchange (JSE), with secondary listings in Botswana (BSE), Nigeria (NSE), Mauritius (SEM), Namibia(NSX) and Ghana (GSE). They’re easily obtained through a member stockbroker in the relevant jurisdiction, through Absa internet banking portal and additionally in South Africa through the Investment Plan administered by Absa Investment Management Services (AIMS).