This ETF Gets Income From Physical Gold

It's a strategy that gives you exposure to gold. It does that through futures and through warrants, which are receipts for physical gold. Then we sell options on those gold futures positions to earn income to bring into the portfolio.

So what that'll do is in an environment where gold is neutral, down, or maybe even a gentle up market, the income should add a little bit of oomph to the portfolio. Now, in an environment where you've had a runaway market, if you just look at the first couple of weeks of October where gold is just exponentially increasing, it may drag a little bit because those options positions, although they're designed to earn income, may offset that gain a little bit.

Conversely, in a down market, a neutral market, even a little bit of an up, like I said, you'd have this income on top of the gold return. So, the nice thing about it is gold is not an income-producing asset, and we've heard from a lot of investors, they want gold exposure, but they really wish they could earn some yield on it.

And that's the purpose of this fund, is to try to give investors a little bit of income along with the gold exposure.