Invesco has trimmed its annual fixed fee to 0.19% on its $7.6bn Invesco Physical Gold ETC, one of its largest exchange traded products listed in Europe.
With a bid-offer spread typically around 2bps, Inesco says the product offers the lowest total cost of any similar gold product in the region.
The manager notes that 2019 saw an all time high in the amount of gold held via exchange traded products by investors. Some $19.3bn of gold ETPs, equivalent to some 400 tonnes, was acquired globally through the year, of which $8.8bn went to products listed in Europe.
Chris Mellor, head of EMEA ETF Commodity Product Management at Invesco, said: "Investors have been turning to gold to provide a potential cushion in case of equity market volatility and concerns about slowing global growth and geopolitical risks. Gold tends to become even more attractive when yields on other investments, historically perceived as ‘safe havens', are low or even negative. For a decade now, our physical gold ETC has offered investors an easy and efficient way to gain exposure to gold, and now for an even lower cost."
This particular Physical Gold ETC buys gold bars, which are stored in the London vaults of JP Morgan Chase Bank.