Industry Updates

Norilsk Nickel slashes fee on gold ETC to lowest in Europe

TAUS charges 0.12%, three basis points cheaper than nearest rival

Tom Eckett


Investors are benefitting from fierce competition in the gold exchange-traded commodity (ETC) space after Norilsk Nickel became the latest issuer to cut the fee on its precious metal strategy.

The mining company, which entered the European ETF market in January, has reduced the fee on its $15m GPF Physical Gold ETC (TAUS) from 0.145% to 0.12%, making it the cheapest gold ETC available in Europe.

Fees have fallen dramatically across gold ETCs over the past 18 months. Invesco was first to move in February 2020 when it reduced the cost of its Invesco Physical Gold ETC (SGLD) by five basis points to 0.19%.

In response, Amundi cut the fee on its strategy, the Amundi Physical Gold ETC (GOLD), to 0.15% in March causing BlackRock, WisdomTree and Invesco to follow suit later in the year.

The move paid off with the iShares Physical Gold ETC (IGLN) and SGLD capturing $4.9bn and $4.6bn assets in 2020, respectively, the two highest inflows across all European-listed ETFs that year.

DWS, Invesco, BlackRock and WisdomTree currently all have gold ETCs that charge 0.15% but TAUS has undercut them by three basis points.

Through its Global Palladium Fund (GPF), Norilsk Nickel offers exposure to six physically-backed metal ETCs.

They are:

  • GPF Physical Gold ETC (TAUS)

  • GPF Physical Silver ETC (TAGS)

  • GPF Physical Platinum ETC (TPLT)

  • GPF Physical Palladium ETC (TPAL)

  • GPF Physical Copper ETC (TCOP)

  • GPF Physical Nickel ETC (TNIK)

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