Japanese Exchange to Offer Gold-Based Trading Fund

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The fund, which is linked to gold prices, was being created by one of the largest investment trusts in Japan, and would have net assets under management of 3 billion to 5 billion, or $25 million to $42 million, said Kotaro Yamazawa, an executive at the exchange.

Osaka Securities Exchange, which operates the second-largest Japanese stock market, may list an exchange-traded gold fund as early as this month as it taps rising interest in commodities from investors looking to diversify their portfolios.

The fund, which is linked to gold prices, was being created by one of the largest investment trusts in Japan, and would have net assets under management of 3 billion to 5 billion, or $25 million to $42 million, said Kotaro Yamazawa, an executive at the exchange.

Rising commodity prices have stirred institutional and retail investor interest in the sector, and has led to an expansion in exchange-traded funds, known as ETFs...The Osaka exchange would be the first in Japan to introduce an ETF for gold.

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