Industry Updates

Invesco cuts fee on gold ETC for second time this year

Joint-cheapest gold ETC on European market

Tom Eckett

a man in a suit

Invesco has once again reduced the fee on its gold ETC as investors continue to pile into the product.

The $13.7bn Invesco Physical Gold ETC (SGLD) has seen its total expense ratio (TER) cut by four basis points to 0.15% making it the joint-cheapest gold ETP on the European market.

Invesco first reduced the fees on SGLD in February by five basis points to 0.19%. Since that point, SGLD has seen over $6bn inflows as investors have poured record assets into gold ETCs.

Alongside SGLD, the $4.1bn Amundi Physical Gold ETC (GOLD) and the $15.4bn iShares Physical Gold ETC (IGLN) are the other gold ETCs that charge 0.15%.

Gary Buxton, head of EMEA ETF at Invesco, commented: “For more than a decade, our gold ETC has provided investors with an efficient way to gain exposure to the performance of the gold price.

“As the ETC has grown significantly in size, we have been able to share some of the economic and operational advantages with our investors. We are now doing this again with a fee cut.”

The price of gold recently passed the $2,000 an ounce mark for the first time as investors have sought safe haven in precious metal as coronavirus sent shockwaves through global markets.

In Q2 alone, investors poured $4.4bn into European-listed gold ETPs.

Chris Mellor, head of EMEA equity and commodity ETF product management at Invesco, added: “Gold has been driven by not only the economic impact of the pandemic but also the reaction of central banks to the crisis.

“Low to zero interest rates, negative-yielding debt, ballooning central bank balance sheets, these are all factors that should favour holding real assets such as gold, especially at a time of such uncertainty.”

Featured in this article