ETF Securities reduces management fee on Swiss gold ETP

Aug 14th, 2017 | By | Category: Commodities

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London-based ETF Securities has announced it has reduced the management fee charged on the ETFS Physical Swiss Gold ETP (LON: SGBS). Effective immediately, SGBS will charge a management fee of 0.25% per annum, down from its previous cost of 0.29%.

ETF Securities reduces management fee on Swiss gold ETP

The ETFS Physical Swiss Gold ETP now costs 0.25% in management fees.

ETFS Physical Swiss Gold is designed to offer a simple, cost-efficient and secure way to access the performance of the gold price. It is backed by physical allocated gold stored in secure vaults in Zurich, Switzerland on behalf of the custodian, JP Morgan Bank. As such, investors in SGBS may enjoy improved security compared to gold ETPs which utilise swaps to obtain their required exposure.

Townsend Lansing, executive director, head of ETCs, ETF Securities, commented: “Our decision to reduce the management fee for our Physical Swiss Gold ETP (SGBS) was based on investors’ increasing appetite for gold as a safe-haven asset, portfolio diversifier and inflation hedge in the ongoing political and economic environment of rising uncertainty.”

Only metal that conforms with London Bullion Market Association’s (LBMA) rules for Good Delivery can be accepted by the custodian. Each physical bar is segregated, individually identified and allocated.

ETFS Physical Swiss Gold is also offered in a sterling-denominated share class, which trades on the London Stock Exchange under the ticker SGBX.

The reduction in cost makes the ETP even more cheaper than the $6.2bn ETFS Physical Gold (LON: PHAU) which has a management fee of 0.39%. PHAU is backed by physical allocated gold held at a HSBC vault but part of its higher price tag may be attributed to the option of authorised participants for direct physical delivery of gold.

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