Aviva Physical Gold

Physical Gold invests in the DWS Xtrackers ETC - Xtrackers IE Physical Gold ETC Securities, which are backed by a direct investment in underlying physical gold. The fund is designed to give investors exposure to the spot return of the gold price. In simple terms, it aims to move broadly with the market price of gold rather than trying to beat it.

Physical Gold gives exposure to gold through exchange-traded commodity securities rather than by holding bullion directly. The underlying physical gold is owned by the issuer and held through secured accounts with a custodian. This structure is intended to combine the practicality of exchange-traded products with the economic exposure of physical gold ownership.

Physical Gold carries several risks, including market fluctuations, currency risk, counterparty risk, derivative risk, liquidity risk, inflation risk and pricing basis risk. Currency risk means movements in exchange rates can affect returns, while counterparty risk means another party involved in the investment may fail to meet its obligations. The fund also notes that prices of precious metals can be more volatile than other asset classes and that returns are not guaranteed.

Physical Gold is not designed to generate income, because investments in ETC securities will not accrue any interest. The fund is focused on providing exposure to the gold price rather than regular cash payments. Investors would typically use Physical Gold as a way to access gold as an asset class, not as an income-producing holding.

Physical Gold is a gold-focused fund because its objective is to track the spot return of the gold price through ETCs backed by physical gold. The fund uses a structure that seeks to make gold exposure easy to trade and transparent. For investors wanting a straightforward way to access gold within a portfolio, Physical Gold is built specifically for that purpose.