Invesco has reduced the fee of its Physical Gold ETC from 0.19% to 0.15% per annum, following an increase in AUM to more than $14bn as the gold price has broken through the $2,000/ounce mark.
According to analysis from Invesco, gold exchange-traded products listed in Europe raised more than $10bn of net new assets in 2020 to the end of July, with $1.4bn of inflows occurring during the final month alone. Invesco's Physical Gold ETC accounted for more than half of these flows during July.
Gary Buxton, head of EMEA ETF at Invesco, said: "For more than a decade, our gold ETC has provided investors with an efficient way to gain exposure to the performance of the gold price.
"As the ETC has grown significantly in size, we have been able to share some of the economic and operational advantages with our investors. We are now doing this again with a fee cut."
This will be the second time this year the firm has reduced the fund's fees, following a two basis-point reduction in February as demand for gold continued to rise.
Chris Mellor, head of EMEA equity and commodity ETF product management at Invesco, said: "Gold has been driven by not only the economic impact of the pandemic but also the reaction of central banks to the crisis.
"Low to zero interest rates, negative-yielding debt, ballooning central bank balance sheets, these are all factors that should favour holding real assets such as gold, especially at a time of such uncertainty. And gold exchange-traded products have given investors an effective way to gain exposure in their portfolios."
The Invesco Physical Gold ETC uses investments into its product to buy physical gold bars, which are stored in the London vaults of J.P. Morgan Chase Bank.
The fund uses a ‘swing bar' method where it will hold gold bars of at least the full value invested. It aims to provide the performance of the gold price, not including its fixed fee.