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The first gold ETF in Bulgaria has been launched


The National Exchange-Traded fund Expat Gold received approval from the Bulgarian Financial Supervision Commission

The Bulagarian Financial Supervision Commission granted permission to Expat Gold – an open-end exchange-traded fund (ETF) managed by Expat Asset Management. This will be the first Bulgarian ETF that gives individual investors liquid exposure to gold as an investment. Expat Gold is expected to be listed on the Bulgarian Stock Exchange in early 2021.

Expat Gold will passively track the price of gold, trying to replicate as closely as possible the performance of LME PM Price Reference – Gold, published by its benchmark administrator – London Metal Exchange.

Expat Gold’s launch will provide Bulgarian individual investors with easy access to financial instruments that track the price movements of gold. Till now, the access of the Bulgarian nonprofessional investors to gold as an investment is usually accompanied by higher fees and additional risks in terms of the storage of the physical asset.

Fund’s features:

  • Open-end ETF, providing daily liquidity. The fund will be traded on the Bulgarian Stock Exchange for individual investors. Elligible investors can buy and sell their shares directly from and to the ETF in the primary market.
  • Tax-free capital gains. Capital gains (profits) from instruments traded on regulated European markets are exempt from taxation in Bulgaria.
  • Not distributing dividends. Gains will be reinvested, increasing the net asset value to the benefit of the investors.

The prime factors that impact gold price positively are:

  • Increased inflation expectations, resultant from the increase of money supply
  • Increased risk perception worldwide
  • Persistence of infinitesimal interest rates
  • Central Banks’ policies to increase gold reserves

More information about the Fund and its primary market here.


The Managing Company

Expat Capital, with its licensed managing company Expat Asset Management, is the largest independent wealth management company in Bulgaria, with hundreds of clients from more than 30 countries and investments in more than 55 markets worldwide in all asset classes – stocks, bonds, funds, options, futures, commodities, precious metals, art, real estate, and currencies. One of Expat’s main business lines is individual investment accounts management. Individual accounts aim to provide greater security, return, and control compared to traditional forms of saving, as well as flexibility and immediate liquidity.

In addition to the wealth management services, the company also manages a family of fund products, with Expat Gold being the 18th Fund in Expat’s portfolio (14 of which unique for Bulgaria and the region):

  • 11 ETFs passively tracking the performance of main equity indices from CEE
  • A short ETF tracking the inverse performance of the SOFIX index
  • The only investment fund in Bulgaria which allows a wide group of investors to profit from artworks as a separate investment class (Expat Global Art)
  • The first gold fund in Bulgaria
  • 3 mutual funds with global focus
  • 1 REIT

Expat cooperates with established international financial institutions in order to guarantee the safety of its clients and the quality of the offered services. Expat’s partners include leading banks, depository banks (custodians), international and local brokerages, market-makers, floor specialists, and other global financial institutions.


Risk disclosure

The national open-end ETF Expat Gold has a high-risk profile. The fund is classified under the 6th (out of the 7) category of the risk indicator providing that commodities and precious metals are highly volatile and their value could sharply rise or fall.

This content is for information purposes only, and no part of it can be perceived either as an offer and/or an invitation to buy or sell financial instruments, or as a piece of professional advice with regard to an investment decision. Past performance is no guarantee of future performance, and the value of investments can go down as well as up, leading to a significant loss of funds as a result. The investments in an exchange traded fund are not insured by a guarantee fund or in any other way.

The full package of documents and information for the funds managed by Expat Asset Management (incl. prospectus, key investors information, fund’s rules, NAV, iNAV, etc.) are published on in Bulgarian (and English). One may also obtain those documents at Expat’s office (Sofia, 96A G. S. Rakovski Str.) every working day from 9 a.m. to 6 p.m.