Invesco launches sterling-hedged physical gold ETC

Minimise currency risk through ‘daily hedging mechanism’

Invesco has launched a sterling-hedged equivalent of its physical gold ETC, which seeks to provide the performance of the gold price, less the annual fee and hedging costs.

The ETC will utilise a "daily hedging mechanism" to minimise currency risk and will settle this through physical gold as opposed to cash, leaving the ETF fully invested in gold. Amundi brings cheapest gold ETC in Europe to London Stock Exchange Physical gold bars are stored in the London vaults of JP Morgan Chase Bank and the product uses a "swing bar" method, meaning it will always hold "at least the full value" of assets invested. The Invesco Physical Gold GBP Hedged ETC features an annual fixed fee of 0.19% and a hedging cost of 0.25%. Chris Mellor, head of ETF equity and com...