October 8, 2018 / 6:00 PM / 2 months ago

Low-cost gold ETF GraniteShares cuts fees as price rivalry hots up

LONDON, Oct 8 (Reuters) - Exchange-traded fund (ETF) company GraniteShares said on Monday it had cut fees on its gold-backed fund, undercutting rival offerings by the World Gold Council and the Perth Mint as price competition in the sector intensifies.

GraniteShares said it had dropped its management charge to 17.49 basis points, or 0.1749 percent of the value of an investment, from 20 basis points.

The World Gold Council’s SPDR Gold MiniShares and the Perth Mint’s Physical Gold ETF, both launched this year, charge 18 basis points.

The downward pressure on gold ETF fees comes after a price war in the much larger equities ETF sector slashed management charges.

Gold-backed funds with low fees such as iShares Gold Trust , run by investment manager BlackRock, are growing in number and market share.

The world’s largest gold ETF, the World Gold Council’s SPDR Gold Trust, which charges 40 basis points, has meanwhile seen its share of the total bullion held by gold-backed funds slip below 50 percent from 75 percent at the start of the decade, Reuters data show.

Gold ETFs allow buyers to invest in physical gold without having to buy and store the metal.

GraniteShares’ gold fund, launched in August 2017, has $283 million under management - far from the SPDR Gold Trust’s $28 billion, according to Refintiv data.

The Perth Mint Physical Gold ETF has $51 million under management and SPDR MiniShares has $237 million.

Reporting by Peter Hobson; Editing by Mark Potter

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below