Gold-backed ETF set for VFEX debut

Published: 22 hours ago

First Mutual Holdings Limited (FMHL) has launched a US dollar-denominated investment product designed to give local investors offshore exposure to gold-linked assets, as global demand for the precious metal continues to strengthen.

The new instrument, the First Mutual Wealth Gold Exchange Traded Fund (FMWG ETF), will be listed on the Victoria Falls Stock Exchange (VFEX) next month and managed through FMHL's subsidiary, First Mutual Wealth Management (Private) Limited.

The ETF was first announced in July 2025 and is structured to track gold assets and selected gold mining equities listed on the Johannesburg Stock Exchange (JSE), offering investors indirect exposure to global gold market performance.

FMHL is positioning the fund to benefit from a sustained rally in gold prices, which rose by more than 60% last year, with projections placing prices between US$5,500 and US$6,500 per ounce by the end of 2026.

The fund will launch with a net asset value of US$10 million, divided into 100 million units. Subscriptions open today and close on April 30, with listing scheduled for May 8.

According to the fund manager, the ETF will be passively managed and structured to closely track the combined performance of the 1nvest Gold ETF and four major JSE-listed gold mining companies.

These include Gold Fields Limited, AngloGold Ashanti, Harmony Gold Mining Company Limited, and DRDGOLD Limited.

The portfolio will allocate 50% to the gold ETF and 50% to the mining equities, each weighted at 12.5%, with quarterly rebalancing to maintain the target structure.

FMHL said the ETF will be open-ended, with daily net asset value (NAV) calculations. Units will be traded on VFEX through registered brokers, while authorised participants will be able to create or redeem units in line with defined market procedures.

Investors will trade at prevailing market prices, which may fluctuate depending on demand, liquidity and spreads, although redemptions will be based on NAV.

The launch reflects growing demand for US dollar-denominated, inflation-hedging investment products in Zimbabwe's capital markets, as investors seek protection from currency volatility and exposure to hard assets such as gold.

Market analysts say the listing is also a milestone for VFEX, which continues to position itself as a gateway for offshore-focused investment instruments within Zimbabwe's financial sector.
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