Investments manager First Mutual Wealth Management (FMW) plans to launch a gold-backed exchange-traded fund (ETF) that will be listed on the Victoria Falls Stock Exchange (VFEX), a move that signals growing innovation in Zimbabwe’s capital markets.
Initial capitalisation for the First Mutual Wealth Gold Exchange Traded Fund (FMW Gold ETF) has been set at US$10 million, with a target listing date of 8 May 2026.
According to an abridged prospectus, the fund is structured to track a blended portfolio comprising physical gold exposure and shares in major gold mining companies listed on international stock markets.
“The investment objective of the fund is to provide investment returns that… closely correspond to the combined weighted performance of the Johannesburg Stock Exchange (JSE)-listed Invest Gold ETF and four JSE-listed gold mining companies,” FMW said.
The fund will allocate 50 percent of its portfolio to a gold ETF and the remaining 50 percent to blue-chip gold mining firms – Gold Fields, AngloGold Ashanti, Harmony Gold, and DRDGold.
The structure is designed to balance commodity price exposure with equity-driven returns.
FMW said the ETF would operate as an open-ended fund, allowing investors to buy and sell units on the VFEX through registered stockbrokers.
“Units may be bought and sold on the VFEX… and may also be created or redeemed through authorised participants,” the wealth manager said.
The investment product comes at a time of heightened interest in gold as a hedge against currency volatility and inflation.
FMW highlighted that gold-linked investments can offer protection against rising prices.
“As the cost of goods and services increases, the value of gold tends to rise… protecting the purchasing power of the investment,” it said.
Subscriptions opened on April 22 and are scheduled to close on 30 April.
The fund also seeks to leverage Zimbabwe’s offshore exchange platform to attract foreign currency inflows.
By listing on the US dollar denominated VFEX, the ETF provides investors with exposure to international gold assets without direct offshore trading.
The FMW Gold ETF will be rebalanced quarterly to maintain its strategic allocation, with an annual review of constituent holdings. Management fees are set at 0.50 percent, contributing to a total expense ratio of about 0.67 percent.
Market watchers say the launch signals growing innovation in Zimbabwe’s capital markets, particularly in the development of exchange traded products linked to global assets. – TML