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Another Gold ETF Lowers Its Fee

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This article was originally published on ETFTrends.com.

The fee wars that have long permeated the exchange traded funds universe have made their way to the gold ETF space. The latest example of that trend is the Aberdeen Physical Swiss Gold Shares (SGOL) .

Earlier this week, Aberdeen Standard Investments announced that SGOL's new annual fee is 0.17%, or $17 on a $10,000 investment. SGOL previously charged 0.39% per year.

“Aberdeen is the third company to enter the gold-ETF price war, which started when GraniteShares introduced its low-cost gold-backed ETF (BAR) last year. In the past year the firm has seen its gold assets under management grow to nearly $300 million,” reports Kitco News.

The SPDR Gold MiniShares Trust (GLDM) , which launched in June, has just over $311 million in assets under management. GLDM charges 0.18% per year, or $18 on a $10,000 investment.

GLDM was priced at launch to be equivalent to one hundredth of an ounce of gold, as opposed to the SPDR Gold Shares (NYSEArca: GLD) at one-tenth of an ounce. GLDM can be attractive for long-term buy and hold investors whom do not wish to take advantage of GLD’s trading efficiencies and optionality.

More On SGOL

By a slight margin over the GraniteShares Gold Trust (NYSE Arca: BAR) , which debuted in August 2017, SGOL is, at least for now, the least expensive US-listed gold ETF.

“Looking to 2019, (Aberdeen's Steve) Dunn said that the firm is expecting increased demand in more defensive assets like gold and other commodities as equity markets struggle to find momentum. Dunn’s comments come as gold prices trade at a five-week high as equities see declines of more than 1% across the board. February gold futures last traded at $1,245 an ounce, up 0.44% on the day,” reports Kitco.

Much of the near-term thesis for gold revolves around the Fed’s plans for interest rates. The Fed has boosted borrowing costs three times this year and market observers widely expect a fourth rate hike in December. However, President Trump has not been shy about saying he would like to see the Fed slow its pace of rate increases.

For more information on the gold market, visit our gold category.

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