U.S. Global Investors Launches the U.S. Global GO GOLD and Precious Metal Miners ETF (TSX: GOGO)

September 29, 2017

/ONLY AVAILABLE FOR INVESTMENT IN CANADA/

TORONTOSeptember 29, 2017—U.S. Global Investors, a San Antonio, Texas-based investment adviser, and Galileo Global Equity Advisors Inc., a Toronto, Ontario-based investment adviser, today launched the U.S. Global GO GOLD and Precious Metal Miners ETF CAD (TSX: GOGO). GOGO is a smart factor, passively managed fund that is designed to track the U.S. Global GO GOLD and Precious Metal Miners Index (GOAUX). GOAUX is designed to capture the performance of companies engaged in the production of precious metals either through active (mining or production) or passive (owning royalties or production streams) means.

In June of this year, U.S. Global Investors launched the U.S. version of GOGO listed on the New York Stock Exchange, with the ticker symbol GOAU. U.S. Global has a long-standing history in the precious metals space, launching the first no-load gold mutual fund in the U.S. That fund, now known as the Gold and Precious Metals Fund (USERX), began in 1974. U.S. Global also has a second precious metals fund, the World Precious Minerals Fund (UNWPX), which began in 1985.

The firm has been honored with many Thomson Reuters Lipper Fund Awards over the years. The most recent award was for the U.S. Global Investors Gold and Precious Metals Fund (USERX) which was the winner of two 2017 Lipper Awards in the Precious Metals Equity Funds category for the three- and five-year periods. In 2016, CEO and chief investment officer Frank Holmes and portfolio manager Ralph Aldis received the award for Best Americas Based Fund Manager by the Mining Journal.

Meeting continued demand in the precious metals space, we believe GOGO differentiates itself from its gold ETF competition by using a smart factor model that places special emphasis on firms showing the highest revenue per employee. This factor yields royalty and streaming companies, which we consider to be the “smart money” of the metals and mining space.

“With the combined efforts of the Galileo team, U.S. Global Investors is pleased to bring this product to Canadian investors,” said Frank Holmes, CEO and chief investment officer of U.S. Global Investors. “Our years of expertise in the gold mining industry have given us a strong platform to work from, and we believe that royalty companies offer a unique opportunity which we are excited to share.”

Royalty companies serve as special financiers that provide upfront capital to help fund producers’ exploration and production projects. In return, they receive royalties on whatever is produced or rights to a “stream.” A stream is an agreed-upon amount of gold, silver or other precious metal at a fixed, lower-than-market price.

With GOGO, investors will gain exposure to the precious metals space, but with potentially less risk. Rather than focusing solely on mining stocks with large market caps, GOGO seeks high-quality, well-managed producers with a proven track record of profitability, even when precious metals prices are down. Royalty companies can possibly help investors manage many common risks associated with traditional producers.

Royalty companies have a history of rewarding their investors handsomely, increasing dividends at a faster pace than the broader equity market, according to Dundee Capital Markets.

The U.S. Global GO GOLD and Precious Metal Miners Index (GOAUX) uses a smart factor, rules-based model consisting of common stocks listed on well-developed exchanges across the globe. GOAUX seeks to identify companies with strong balance sheets and attractive portfolios of active mines, among other factors. Companies that rely primarily on debt to finance their business are eliminated from the index.

GOAUX is rebalanced and reconstituted quarterly. The expense ratio for the ETF is 0.60%.

About U.S. Global Investors, Inc.

The story of U.S. Global Investors goes back more than 40 years when it began as an investment club. Today, U.S. Global Investors, Inc. (www.usfunds.com) is a registered investment adviser that focuses on niche markets around the world. Headquartered in San Antonio, Texas, the Company provides money management and other services to U.S. Global Investors Funds, U.S. Global ETFs and other international clients.

About Galileo Global Equity Advisors

With over 25 years of experience specializing in the small and micro-cap equity space, Galileo Global Equity Advisors has become one of Canada’s premier boutique investment managers specializing in smaller company investment strategies.

All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor.

The U.S. Global Go Gold and Precious Metal Miners Index is designed to capture the performance of companies engaged in the production of precious metals and minerals either through active (mining or production) or passive (owning royalties or production streams) means. Precious metals companies that rely primarily on debt to finance their business are eliminated from the index. The index uses a multi-factor, rules-based model and consists of common stocks listed on well-developed exchanges across the globe. An investment cannot be made directly in an index.

The mutual funds mentioned in this press release are open to U.S. investors only, and these references are not intended as an offer of those securities to Canadian investors.

U.S. Global Investors is the portfolio advisor and manager of the U.S. Global Canadian ETFs whereas Galileo is the Manager and Trustee of the Canadian ETFs. U.S. Global owns a 65% interest in Galileo.

Net Asset Value
as of 12/15/2017

Global Resources Fund PSPFX $5.91 -0.03 Gold and Precious Metals Fund USERX $7.27 -0.06 World Precious Minerals Fund UNWPX $5.67 -0.05 China Region Fund USCOX $11.08 -0.09 Emerging Europe Fund EUROX $7.06 -0.01 All American Equity Fund GBTFX $24.78 0.24 Holmes Macro Trends Fund MEGAX $22.12 0.24 Near-Term Tax Free Fund NEARX $2.21 No Change U.S. Government Securities Ultra-Short Bond Fund UGSDX $2.00 No Change