Fidelity Files Gold ETF Combining Income With Gold Exposure

Fidelity has filed for the Fidelity Yield Enhanced Gold ETF, an options-based strategy designed to pair gold exposure with current income. The fund plans to invest at least 80% of assets in gold-related investments, gaining exposure through Gold ETPs as well as options, swaps and futures, including FLEX Options. It will seek additional income by writing call options on Gold ETPs, while holding substantial short-term U.S. Treasuries, government securities and other high-quality short-term instruments as collateral and yield-generating assets. The ETF may also invest up to 25% of assets through a Cayman Islands subsidiary.