Published: 31 July 2025

First Mutual Holdings Limited (FMHL) is poised to launch Zimbabwe's first-ever Gold Exchange Traded Fund (ETF) on the Victoria Falls Stock Exchange (VFEX) in the second half of 2025, following the receipt of all necessary regulatory approvals.

The fund, to be managed by First Mutual Wealth, will track gold assets and gold mining shares listed on the Johannesburg Stock Exchange (JSE) rather than holding physical gold directly. This approach, according to management, avoids the operational complications of storing and securing bullion while offering investors a diversified exposure to the gold sector.

The listing comes at a time when gold prices have soared to record highs—up more than 40% year-to-date—driven by global economic uncertainty, currency volatility, and investor demand for safe-haven assets.

Speaking at the group's annual general meeting, FMHL group chief executive officer Douglas Hoto said the Gold ETF was designed to provide local investors with a regulated, liquid and transparent way to hedge their portfolios.

"The fund tracks gold assets and gold mining shares that are listed on the JSE. The fund is expected to be listed on the VFEX during H2 2025," Hoto said. "We will use the initial shareholder allocation to acquire JSE-listed gold sector shares, and then list our ETF locally."

First Mutual Wealth general manager Thomas Mutswiti said the product was conceived as a hedge against local market volatility and currency risk, allowing Zimbabwean investors to gain indirect access to offshore assets while complying with local exchange control regulations.

He explained that the ETF will be composed of 50% JSE-listed gold mining shares and 50% existing gold-focused ETFs traded on the JSE.

"We didn't want to have direct physical gold holdings, which can present complications," Mutswiti said. "Instead, this approach gives investors access to the upside potential of gold, particularly in times of market stress, when gold prices typically rise due to its safe-haven status."

Mutswiti noted that while gold traditionally generates returns through capital appreciation rather than income, the inclusion of dividend-paying gold mining stocks in the ETF could provide an additional cash flow benefit to investors.

He added that the concept had been in development for some time, even before gold's recent surge past US$1 800 per ounce, but regulatory processes delayed its launch.

"There's always volatility in investment markets, and it's that volatility we want to play into," he said.

The move is expected to broaden the VFEX's product range and deepen Zimbabwe's fledgling capital markets, offering a new avenue for both institutional and retail investors to gain gold exposure without directly trading on foreign exchanges.
- newsday