The fund seeks to mirror gold price without the physical storage costs and avoid tax expenses linked to commodity fund.
About 75% of the fund’s assets are allocated to short term U.S. government bonds and investment grade fixed income corporate notes. The rest of the fund’s asset is invested in gold bullion ETFs and derivatives
The fund’s structure allows investors to report as 1099 tax reporting and avoid capital gain tax treatment of a commodity fund (60% for long term or 40% for short term) or holding physical bullion which accrues 28% fixed rate.
