The Aberdeen Standard Physical Gold Shares ETF (SGOL) has become the US’s third largest ETF in terms of assets under management to track physical gold having just passed the USD1 billion milestone.
Investor interest in SGOL has been spurred by its increased competitiveness. It is the cheapest gold ETF on the US market following a reduction in the sponsor fee from 0.39 per cent to 0.17 per cent in December 2018. The product also trades commission free on the TD Ameritrade and Charles Schwab fund platforms.
Another factor is the renewed interest amongst clients for exposure to gold.
Aberdeen Standard Investments Head of Exchange Traded Funds, Steven Dunn, says: “The recent market volatility generated by fears around global trade and geopolitical tensions has certainly increased clients’ appetite for gold, with the precious metal at six year highs as recently as last week. This really vindicates the view that the only good time for investors to have gold in their portfolio is all of the time.
“SGOL is well positioned to benefit from the current demand for gold because it is the cheapest way for US investors to track the price of bullion and the fund is easily accessible commission free through two of the largest retail platforms.”
SGOL aims to track the performance of the price of gold bullion, less expenses as a way to offer investors a cost-effective and convenient way to access the precious metal. It was launched in 2009 and was designed to lower the barriers to investing in gold.