ABSA NewGold ETF

The ABSA NewGold ETF (GLD) is an exchange-traded fund listed on the Nairobi Securities Exchange (NSE) that provides investors with a simple and cost-efficient way to gain exposure to physical gold bullion. Each security represents approximately 1/100th of a troy ounce of gold, fully backed by physical gold held in secure vaults by custodian ICBC Standard Bank in London. The ETF tracks the spot price of gold in real-time, denominated in Kenyan Shillings (KES) based on the international USD gold price, and trades like a regular equity security without intra-day price limits.

Originally launched by Barclays (now Absa) as the first ETF in the Kenyan market, it debuted on the NSE on 29 March 2017 with 400,000 shares issued at KES 1,205 per share. The product stems from NewGold Issuer (RF) Limited, formed about 12 years prior (around 2005), managed by NewGold Manager (Pty) Ltd, and also listed on exchanges like the Johannesburg Stock Exchange (JSE). It complies with Shariah Law and introduces depth to the NSE by offering East African investors access to gold without direct physical ownership.

Absa NewGold ETF holds a pioneering market position as Kenya's inaugural gold-backed ETF, enhancing the NSE's product range and regional appeal. With shares issued at 665,000 and low average trading volume, it remains a niche instrument for hedging against inflation and currency risks, correlated directly with global gold prices.