Financial Tribune - Investors warmly greeted the underwriting of the Iranian capital market�s first exchange-traded commodity on Iran Mercantile Exchange, as 80% of the units offered by Lotus Gold Fund were sold on Saturday.

The investment fund, offered by Lotus Investment Fund, has Bahar Azadi Gold Coin as its underlying asset and is set to have an asset composition of both derivatives and securities based on gold.

According to Bourse Press, 7.8 million units of �TALA� were bought in the first hours of the trading day. The exchange-traded fund is scheduled to trade daily till Wednesday.

The minimum investment threshold is 10 units and the maximum is 10 million, each of which unit is priced at 10,000 rials. Investors can participate both through brokerages and online using their personal trading codes.

The gold fund will offer no dividend per share and the investor will profit based on the increasing value of purchased units over time. Considering the ETF�s active management, earnings are expected to exceed profits made from physical gold trading.

Active management is a portfolio management strategy where the manager makes specific investment with the goal of outperforming an investment benchmark index. It operates in contrast to passive management, in which investors expect a return that closely replicates a benchmark index�s movement and returns.