U.S. Global Investors Launches “GOAU” Gold Royalty ETF (NYSE: GOAU)

June 28, 2017

SAN ANTONIOJune 28, 2017—U.S. Global Investors, a San Antonio, Texas-based investment adviser, today launched the U.S. Global GO GOLD and Precious Metal Miners ETF (NYSE Arca: GOAU). GOAU is a smart factor, passively managed fund that is designed to track the U.S. Global GO GOLD and Precious Metal Miners Index (GOAUX). GOAUX is designed to capture the performance of companies engaged in the production of precious metals either through active (mining or production) or passive (owning royalties or production streams) means.

Meeting continued demand in the precious metals space, we believe GOAU differentiates itself from its gold ETF competition by using a smart factor model that places special emphasis on firms showing the highest revenue per employee. This factor yields royalty and streaming companies, which we consider to be the “smart money” of the metals and mining space.

Royalty companies serve as special financiers that provide upfront capital to help fund producers’ exploration and production projects. In return, they receive royalties on whatever is produced or rights to a “stream.” A stream is an agreed-upon amount of gold, silver or other precious metal at a fixed, lower-than-market price.

With GOAU, investors will gain exposure to the precious metals space, but with potentially less risk. Rather than focusing solely on mining stocks with large market caps, GOAU seeks high-quality, well-managed producers with a proven track record of profitability, even when precious metals prices are down. Royalty companies can possibly help investors manage many common risks associated with traditional producers.

“U.S. Global Investors has a long-standing history in the precious metals space; we are known for gold, and our boots-on-the-ground knowledge of the industry is strong,” said Frank Holmes, CEO and chief investment officer of U.S. Global Investors. “Throughout our years of investing in the gold mining space, we have found that royalty companies have tended to be excellent allocators of capital, taking on very little debt and deploying cash reserves only at the most opportune times.”

Royalty companies have a history of rewarding their investors handsomely, increasing dividends at a faster pace than the broader equity market, according to Dundee Capital Markets.

The U.S. Global GO GOLD and Precious Metal Miners Index (GOAUX) uses a smart factor, rules-based model consisting of common stocks listed on well-developed exchanges across the globe. GOAUX seeks to identify companies with strong balance sheets and attractive portfolios of active mines, among other factors. Companies that rely primarily on debt to finance their business are eliminated from the index.

GOAUX is rebalanced and reconstituted quarterly. The expense ratio is 0.60%.

About U.S. Global Investors, Inc.

The story of U.S. Global Investors goes back more than 40 years when it began as an investment club. Today, U.S. Global Investors, Inc. (www.usfunds.com) is a registered investment adviser that focuses on niche markets around the world. Headquartered in San Antonio, Texas, the Company provides money management and other services to U.S. Global Investors Funds, the U.S. Global Jets ETF and other international clients.

 

 

Please consider carefully a fund’s investment objectives, risks, charges and expenses. For this and other important information, to obtain a hardcopy statutoryand summary prospectuscall 844.383.5387. Read it carefully before investing.

Investing involves risk, including the possible loss of principal. Shares of any ETF are bought and sold at market price (not NAV), may trade at a discount or premium to NAV and are not individually redeemed from the fund. Brokerage commissions will reduce returns. Because the fund concentrates its investments in specific industries, the fund may be subject to greater risks and fluctuations than a portfolio representing a broader range of industries. The fund is non-diversified, meaning it may concentrate more of its assets in a smaller number of issuers than a diversified fund. The fund invests in foreign securities which involve greater volatility and political, economic and currency risks and differences in accounting methods. These risks are greater for investments in emerging markets. The fund may invest in the securities of smaller-capitalization companies, which may be more volatile than funds that invest in larger, more established companies. The performance of the fund may diverge from that of the index. Because the fund may employ a representative sampling strategy and may also invest in securities that are not included in the index, the fund may experience tracking error to a greater extent than a fund that seeks to replicate an index. The fund is not actively managed and may be affected by a general decline in market segments related to the index.

Gold, precious metals, and precious minerals funds may be susceptible to adverse economic, political or regulatory developments due to concentrating in a single theme. The prices of gold, precious metals, and precious minerals are subject to substantial price fluctuations over short periods of time and may be affected by unpredicted international monetary and political policies. We suggest investing no more than 5% to 10% of your portfolio in these sectors.

Distributed by Quasar Distributors, LLC. U.S. Global Investors is the investment adviser to GOAU.

All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor.

The U.S. Global GO GOLD and Precious Metal Miners Index is designed to capture the performance of companies engaged in the production of precious metals and minerals either through active (mining or production) or passive (owning royalties or production streams) means. Precious metals companies that rely primarily on debt to finance their business are eliminated from the index. The index uses a multi-factor, rules-based model and consists of common stocks listed on well-developed exchanges across the globe. An investment cannot be made directly in an index.

Net Asset Value
as of 07/21/2017

Global Resources Fund PSPFX $5.60 -0.01 Gold and Precious Metals Fund USERX $7.24 0.05 World Precious Minerals Fund UNWPX $6.42 0.04 China Region Fund USCOX $10.07 -0.14 Emerging Europe Fund EUROX $6.64 -0.05 All American Equity Fund GBTFX $24.60 -0.06 Holmes Macro Trends Fund MEGAX $20.11 -0.03 Near-Term Tax Free Fund NEARX $2.23 No Change U.S. Government Securities Ultra-Short Bond Fund UGSDX $2.00 No Change