Invesco has lowered the charges on its Bodily Gold exchange-traded commodity from 0.19% to 0.15%, following document inflows into the product through the Covid-19 pandemic.
The fund reportedly added round $700m (£537m) in new consumer money in July alone, accounting for half the $1.4bn influx into European passive gold merchandise.
Within the 12 months to finish July the sector added $10bn in new funds as traders drove the value of gold 33% to hit a brand new document excessive of $2,063 final week, shattering the 2011 document of $1,987. The value stays close to that peak, at $2,030.
Invesco’s Bodily Gold now runs greater than $14bn of belongings in bodily gold bars, saved within the London vaults of JP Morgan.
Head of EMEA fairness at Invesco Chris Mellor stated: ‘Gold has been pushed by not solely the financial affect of the pandemic but additionally the response of central banks to the disaster.
‘Low-to-zero rates of interest, negative-yielding debt, ballooning central financial institution stability sheets, these are all components that ought to favour holding actual belongings equivalent to gold, particularly at a time of such uncertainty. And gold exchange-traded merchandise have given traders an efficient technique to acquire publicity of their portfolios.’
SPDR Gold Shares, the biggest fund backed by bodily gold on the planet, was the most well-liked gold exchange-traded fund (ETF) in July, pulling in additional than $3bn in belongings.
The ETF is now one of many world’s largest homeowners of bodily gold. In accordance with the FT, the fund’s possession has surpassed that of the central banks of Japan and India.