Invesco has unveiled a sterling-hedged version of its physical gold exchange-traded commodity (ETC) following record demand for the precious metal,
The Invesco Physical Gold GBP Hedged ETC (SGLS) is listed on the London Stock Exchange (LSE) with a fixed fee of 0.19% and a hedging cost of 0.25%.
SGLS will offer investors exposure to the price of gold in sterling.
Currency fluctuations can have a material impact on investors. For example, gold has risen 16.7% in H1 when converted to US dollars but 23.7% in sterling over the same period.
Chris Mellor, head of ETF Equity and commodity product management at Invesco, commented: “Many investors this year have told us they want exposure to the gold price but not the currency risk attached to a US dollar asset.”
Investors have piled into gold ETCs this year. In April, the Invesco Physical Gold ETC (SGLD) broke through the $10bn barrier amid concerns about the long-term impact of coronavirus.
Assets in SGLD currently sit at $11.8bn making it Invesco’s largest ETF in Europe.
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