100 trading days after the launch of Xetra-Gold by Deutsche Boerse Commodities, the physically backed bond has successfully made its mark on the market.
Of the 48 exchange-traded commodities listed on the Frankfurt Stock Exchange, Xetra-Gold has the highest turnover. From the beginning of the year to the end of April 2008, the certificate recorded turnover of 248 million, which equates to 38% of all turnover chalked up by the fledgling segment for exchange-traded commodities.
In second place are Lyxor Gold Bullion Securities followed by ETFS Physical Gold. The rest is distributed among the remaining products in the segment.
“Customers have reacted very positively to the product from the outset, showing a high level of acceptance,” says Martina Gruber, managing director, Deutsche Boerse Commodities.
Xetra-Gold initially attracted the attention of primarily private investors, but now institutional investors such as insurance companies and pension funds are increasingly showing interest, appreciating the conformity of the product with a key EU Directive the UCITS.
“The sales success has been attributable to the products unique features, which they will also be including in their new products,” adds Steffen Orben, managing director, Deutsche Boerse Commodities.