Solactive Global Gold Giants Index launched as underlying for new Harvest Portfolios Group ETF
Solactive is pleased to announce the launch of the Solactive Global Gold Giants Index, which will be used as the underlying of Harvest Portfolios Group Inc.’s Harvest Global Gold Giants Index ETF (TSX: HGGG). The Index intends to track the price movements of the 20 largest gold mining companies by company market capitalization listed on a regulated stock exchange in North America, Australia or in certain European countries.
“Harvest Portfolios Group Inc. approached us with a well-defined perspective on the structure of the index universe, and we developed the index in a very straightforward manner,” elucidates Steffen Scheuble, CEO of Solactive. “We are very happy that Harvest Portfolios Group Inc. has chosen a Solactive index for their ETF for the first time.”
Working profitably in times of a lower gold-price, the selected companies consolidated their prevalence within the industry and are now benefiting from a margin expansion due to the metal’s current price increase.
“The gold market and gold mining producers have been in a long decline lasting almost 7 years, bringing values down considerably from the highs of 2011/12,” notes Michael Kovacs, President & CEO of Harvest Portfolios Group Inc. He continues: “The Gold Giants have been able to take advantage of these prices to acquire or partner with smaller producers to expand their reserves and production. We are pleased to work with Solactive to bring HGGG to the Canadian market.”
The Global Gold Giants Index ETF is targeted at investors who follow a defensive investment strategy since experts at Harvest Portfolios Group Inc. believe the current economic cycle is in late stages, resulting in a potential weakening of the US dollar.