Invesco has reduced the annual fixed fee on the $7.6 billion Invesco Physical Gold ETC, one of the firm’s largest exchange-traded products (ETPs) listed in Europe. With a reduced fixed fee of 0.19% per annum and a bid-offer spread typically around two basis points, the ETC offers investors the lowest total cost exposure to the price of gold of any competing gold product in Europe.
Demand for gold escalated in 2019, with central banks being net buyers for the 10th consecutive year and the amount held by investors in gold ETPs at an all-time high. US$19.3 billion worth of gold ETPs (representing more than 400 tonnes) was purchased globally in 2019, with US$8.8 billion of this into Europe-listed products[1].
Chris Mellor, Head of EMEA ETF Commodity Product Management at Invesco, said, “Investors have been turning to gold to provide a potential cushion in case of equity market volatility and concerns about slowing global growth and geopolitical risks. Gold tends to become even more attractive when yields on other investments, historically perceived as ‘safe havens’, are low or even negative. For a decade now, our physical gold ETC has offered investors an easy and efficient way to gain exposure to gold, and now for an even lower cost.”
Product |
Invesco Physical Gold ETC |
|
Exchange[2] |
London Stock Exchange |
|
Reference index |
LBMA Gold Price PM |
|
Bloomberg code |
SGLD LN |
SGLP LN |
Base / trading currency |
USD / USD |
USD / GBP |
Fixed fee (p.a.) |
0.19% |
The product is designed to provide the performance of the gold price, less the annual fee. Investments are used to purchase physical gold bars, which are held in an allocated account and stored securely in the London vaults of J.P. Morgan Chase Bank. Investing in a gold ETC can be much more cost-efficient and practical than buying and holding gold, which involves arranging transportation, storage and insurance.
[1] Source: World Gold Council, 29 January 2020, based on data to 31 December 2019.
[2] Also available in EUR on Xetra, Borsa Italiana and Euronext Amsterdam, and in USD on SIX Swiss Exchange.