BlackRock has cross-listed its blockbuster physically backed gold exchange-traded product into the German market.
The ETC offers one of the cheapest vehicles in Europe for obtaining physically backed gold exposure.
The $13.5 billion iShares Physical Gold ETC has been listed on Xetra in euros under the ticker PPFB GY.
Prior to the listing, the ETC had only been available in Europe on London Stock Exchange where it trades in US dollars (IGLN LN), pound sterling (SGLN LN), and euros (EGLN LN).
Investment into the ETC is 100% backed by physical gold stored in the London vaults of JP Morgan Chase.
Only gold bars that meet the London Bullion Market Association’s rules on Good Delivery and Responsible Sourcing will be eligible to back the ETC.
The ETC comes with an expense ratio of just 0.15%, making it one of the cheapest vehicles in Europe for obtaining physically backed gold exposure.
The $13.3bn Invesco Physical Gold ETC (SGLD LN) also costs 0.15%, while the GPF Physical Gold ETC (0IIA GY) from Nornickel’s Global Palladium Fund, which launched in January, is the least expensive as measured by total expense ratio (TER) at 0.145%.
TERs are only one aspect of a product’s cost; investors should also consider liquidity and total cost of ownership when comparing products.