FACTOR INVESTING – THURSDAY 14TH JULY 2022 (08:15-11:30) – THE BERKELEY, LONDON Please be a part of us for our annual issue investing breakfast briefing with participation from MSCI, FlexShares ETFs, Tabula and Professor Stefan Zohren, Deputy Director of the Oxford-Man Institute of Quantitative Finance. Please register now if you need to attend.
Franklin Templeton has launched a low-cost bodily backed gold ETF within the US with all underlying bullion holdings sourced from moral miners and refiners.
The Franklin Responsibly Sourced Gold ETF (FGLD US) has been listed on NYSE Arca with an expense ratio of 0.15%.
The ETF presents one of many lowest-cost automobiles for bodily backed gold publicity within the US – the most affordable gold ETF is the $5.0 billion SPDR Gold MiniShares Belief (GLDM US) which prices 0.10%, whereas the $1.0bn iShares Gold Belief Micro ETF (IAUM US) can be priced at 0.15%.
Different low-cost gold ETFs which can be priced under 0.20% are supplied by Goldman Sachs, GraniteShares, and Aberdeen Commonplace.
Regardless of getting into a comparatively crowded discipline, the brand new ETF’s ESG credentials permits the fund to face out from its opponents – every share within the ETF is 100% backed by London Good Supply gold bullion bars that have been refined after 1 January 2012 in accordance with London Bullion Market Affiliation’s (LBMA) Accountable Gold Steerage.
The LBMA’s framework establishes minimal obligatory necessities alongside all the gold provide chain for all suppliers wishing to commerce with the London Bullion market. It’s supposed to make sure that London Good Supply gold is mined and refined by verified provide chains that meet internationally acknowledged moral requirements when it comes to defending the surroundings and combatting cash laundering, terrorist financing, and human rights abuses.
David Mann, Head of International ETF Capital Markets at Franklin Templeton, mentioned: “We’re excited to supply the Franklin Responsibly Sourced Gold ETF as some of the cost-effective gold ETFs out there. We imagine it’s a unbelievable possibility for traders trying so as to add gold investments to their portfolios, providing a compelling solution to take part within the bodily gold market with the added peace of thoughts of realizing that this gold is responsibly sourced.”