Aberdeen Standard slashes fee on gold ETF

Dec 11th, 2018 | By | Category: Commodities

Aberdeen Standard Investments has reduced the sponsor fee for the Aberdeen Standard Physical Swiss Gold Shares ETF (SGOL US) from 0.39% to 0.17%.

Aberdeen Standard slashes fee on gold ETF

SGOL is now tied as the cheapest gold ETP in the US.

Listed on NYSE Arca, SGOL provides exposure to changes in the spot price of gold less expenses and is backed by physical gold.

The fund, which was taken over by Aberdeen Standard in the first half of the year as part of its acquisition of ETF Securities’ US operations, has nearly ten years of operating history, highlighting its dependability throughout market cycles.

Steven Dunn, Head of ETFs at Aberdeen Standard Investments, commented, “One of the reasons that the fund has proved so durable is that we have constantly looked at the best way to make it both competitive and a quality product for our clients.

“The ETF market is constantly evolving and we will continue to adapt what we do to help meet the needs of our clients.”

SGOL is now tied as the cheapest gold ETP in the US alongside the GraniteShares Gold Trust (BAR US). Reflecting the degree of competition surrounding this space, BAR reclaimed the title of cheapest gold ETP as recently as October following a three-basis-point reduction in its price.

Offering the cheapest product has proved a successful strategy for GraniteShares – BAR has over $300 million in assets under management, not bad for an ETP that launched just over a year ago.

While SGOL is also sizable, containing around $800 million in AUM, the ETP has lost assets in recent months to cheaper rivals. The fund housed some $1.1 billion in AUM when it was acquired in April.

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