State Street Global Advisors newly launched StreetTracks Gold Trust exchange-traded mutual fund attracted $550 million of assets hours after making its debut Thursday morning on The New York Stock Exchange, CBSMarketWatch reports.
The ETFs share price slipped 0.1%, but the modest decline failed to dampen investors enthusiasm for the first low-cost fund offering access to diversified gold holdings. Increments of 100,000 shares of the fund, which are priced at 10% of the price for an ounce of troy gold, can be redeemed into gold bullion.
With gold prices expected to reach $450 by the end of the year, experts predict strong inflows for the fund during the remainder of the year. Barclays Global Investors is hot on SSgAs heels with another gold ETF offering slated to launch on the American Stock Exchange.
One analysts predicted both investments to accrue nearly $2 billion of assets within the next several months.