FYI: There's a fee war in gold ETFs, but nobody's buying.
Earlier this month, the $797 million ETFS Physical Swiss Gold Shares (SGOL), the fifth-largest gold ETF, cut its fees from 0.39% to 0.17%. That put SGOL just a hair cheaper than the $305 million GraniteShares Gold Trust (BAR), which, with an expense ratio of 0.1749%, had been the cheapest physical gold ETF on the market.
Rather than usher in a wave of new investor cash, SGOL has actually lost assets since the fee cut. Since Dec. 1, the fund has seen $18 million in net outflows. BAR, meanwhile, has registered no new inflows or outflows over the same period.
Usually a fee cut opens the floodgates to new cash, so why have gold investors this time kept their wallets closed? Have they finally lost their taste for physical gold ETFs?
Hardly.
Regards,
Ted
https://www.etf.com/sections/features-and-news/muted-reaction-cheap-gold-etfs
