A total of 27 stocks out of 165 ended the last week in July with gains. The stock market squeezed out a 0.88% gain in July as the earnings season and economic uncertainty weighted down on stocks.
However, one equity stood tall among the rest as the best performer this week and second-best in July. It is also one of the best equities this year having gained over 60%.
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The equity is New Gold ETF an exchange-traded fund listed on the Nigerian Stock Exchange. It gained 17.4% last week alone and 27.5 in July month to date.
What is New Gold ETF? This is an exchange-traded fund managed by Vetiva Securities.
- It tracks the price of gold and offers institutional and retail investors the opportunity to invest in a listed instrument (structured as a debenture) that is fully backed by gold bullion.
- Each NewGold security is equivalent to approximately 1/100 ounces of real gold bullion held in a secured stockpile of gold bullion.
- All gold is kept in the form of London Gold Delivery Bars and Good Delivery Standards are prescribed by LBMA.
- Its unit price rose from M7,995 to N8, 500 in just one week.
READ MORE: Gold prices surge by 17.4% in 2 months due to global economic crisis
Why is it hot? Not clear what is driving demand however, we believe the uncertainty in the economy and the limited viable investment options is driving smart money towards this ETF.
- Investors typically flee to gold during periods of uncertainty and this could just be an example.
- Gold prices have also hit multiple. highs in recent weeks in markets across the world.
- The dollar is also under pressure as Americans step up their bailout plans. This is impacting positively on Gold prices.
- It is also the best performing Mutual Fund in 2020.Â
