Like us, you might have noticed the ETF Securities Physical Gold ETF (ASX: GOLD) and think that now could be a good time to consider taking a closer look. Here’s what ETF investors need to know.
1. What does the GOLD ETF do for investors?
The ETFS GOLD ETF provides investors with access to the precious metal of gold, by seeking to achieve a return equivalent to the movements in the gold spot price, before fees and expenses.
2. Funds under management (FUM)
The ETF Securities GOLD ETF had $2040.75 million of money invested when we last pulled the monthly numbers. Given GOLD’s total funds under management (FUM) figure is over $100 million, the ETF has met our minimum criteria for the total amount of money invested, otherwise known as FUM. We draw the line at $100 million for ETFs in the Commodities sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.
3. Don’t forget about the fees & costs
ETF Securities charges investors a yearly management fee of 0.40% for the GOLD ETF. This means that if you invested $2,000 in GOLD for a full year, you could expect to pay management fees of around $8.00.
For context, the average management fee (MER) of all ETFs covered by Best ETFs Australia on our complete list of ASX ETFs is 0.5% or around $10.00 per $2,000 invested. Keep in mind, small changes in fees can make a big difference after 10 or 20 years.
These are just a few of the considerations or factors you would need to look at when running the rule over the GOLD ETF. Before you go any further, take a look at our free ETF Securities GOLD report. And while you’re at it, don’t forget to search our complete list of ASX ETFs.