Invesco is reducing the annual fixed fee on the USD4.5 billion Invesco Physical Gold ETC, the largest of the firm’s exchange-traded products (ETPs) listed in Europe.
It has the lowest overall cost of any gold ETP available in Europe, combining one of the lowest annual fixed fees with tight bid-offer spreads typically around 3 basis points.
Demand for gold has been increasing in recent months. The Invesco Physical Gold ETC has captured USD190 million of net inflows since 1 October this year, while more than USD1 billion of net assets have gone into all gold ETPs listed in Europe.
Chris Mellor, Head of EMEA ETF Commodity Product Management at Invesco, said, “Gold could provide useful diversification for investors who are worried about volatile equity markets and the possible impact of slowing economic growth, trade wars and Brexit. One of the big attractions of gold as an investment is that it tends to behave differently than other asset classes, especially equities. For investors considering adding exposure, we’ve just made it even more attractive from a cost perspective.”
The Invesco Physical Gold ETC 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 JP Morgan Chase Bank. Investing in a gold ETC is much more cost-efficient and practical than buying and holding gold, which involves arranging transportation, storage and insurance.