New Listing

WisdomTree launches responsibly-sourced physical gold ETC

WGLD has a TER of 0.15%

George Geddes

Alexis Marinof

WisdomTree has expanded its gold ETC range with the launch of a product that is entirely exposed to responsibly sourced gold bars.

The WisdomTree Core Physical Gold ETP (WGLD) is listed on London Stock Exchange with a management expense ratio of 0.15%.

WGLD tracks the spot price movement of the yellow metal while physically backing the investments and storing the responsibly sourced gold bars in the vaults of the custodian.

WisdomTree completed the acquisition of ETF Securities' European ETC business in 2018, which included the firm's gold offering in Europe. WisdomTree has $17bn assets under management (AUM) across its range of gold ETPs.

WGLD becomes WisdomTree’s eleventh gold ETP on offer which includes the WisdomTree Physical Swiss Gold ETC (SGBS) along with currency hedged, synthetically replicated, inverse and leveraged exposures.

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Commenting on the launch, Alexis Marinof (pictured), head of WisdomTree Europe, said: “WGLD complements our extensive range of gold ETPs, including the most comprehensive physical gold ETP range in Europe – so investors can choose the exposure that’s absolutely right for them.

“WGLD is backed by physical gold stored in vaults located in London, the world’s most liquid gold market, and aims to allocate responsibly sourced physical gold.”

Nitesh Shah, director, research, Europe at WisdomTree, added: “The diversification benefits of gold in 2020 so far has helped investors mitigate volatility and uncertainty, emphasising the importance of holding this historic safe-haven asset in portfolios.

“Looking forward, with inflation once again on investors’ minds, the need to hold effective hedges against inflation, eroding portfolio value, will become all-the-more important – 2021 could see another year of strong returns for the precious metal”.

At 0.15%, WGLD is the joint-cheapest ETP in the market alongside the Invesco Physical Gold ETC (SGLD) which has had its total expense ratio reduced twice this year and the Amundi Physical Gold ETC (GOLD).

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