Amundi brings cheapest gold ETC in Europe to London Stock Exchange

James Baxter-Derrington
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Amundi brings cheapest gold ETC in Europe to London Stock Exchange

Amundi has announced its first exchange traded commodity (ETC) to be listed on the London Stock Exchange will be its physically backed gold product, first listed in Paris and Amsterdam.

The Amundi Physical Gold ETC, with a total expense ratio of 0.15%, is the cheapest in Europe and provides investors exposure to gold through a physically backed product held in HSBC's London vault.

Investors will have access to a complete list detailing each gold bar with brand, serial number and weight, and the ETC itself is designed with a "swing bar mechanism," which ensures the total amount of gold is always 100% allocated.

The Amundi Physical Gold ETC, with a total expense ratio of 0.15%, is the cheapest in Europe and provides investors exposure to gold through a physically backed product held in HSBC's London vault."

The ETC, which has attracted assets exceeding $2.7bn since its launch in May 2019, exclusively holds bars sourced from 2012 and compliant with the London Bullion Market Association's Responsible Sourcing Programme.

Ashley Fagan, head of ETF, indexing and smart beta development for UK and Ireland at Amundi, said: "Markets in 2020 have been volatile but gold has delivered as a safe-have asset.

"In an environment marked by uncertainty, gold can be used by investors to diversify their portfolios and provide an important long-term hedge against market risks and inflation.

"With this listing on the London Stock Exchange, we will provide UK investors with a robust, transparent and cost-efficient way to gain exposure to gold, in a local sterling trading line."