Asset manager Invesco has launched the Invesco Physical Gold II ETC, a physically backed product providing investors with more accessible exposure to gold.
The exchange traded commodity (ETC) will track the LBMA Gold Price, following the approach used by Invesco’s flagship physical gold product.
The offering will be backed by physical gold bullion. Invesco said it will hold at least an equivalent amount of gold to the total value of the ETC, with the metal stored in vaults operated by JP Morgan Chase Bank in London.
Each certificate will initially represent one-thousandth of an ounce of gold, implying a value of approximately $4 per certificate at a gold price of $4,000 per ounce. According to the asset manager, this makes it easier for investors to gain cost-efficient exposure to the price of gold even with smaller investments.
Matthew Tagliani, head of Emea, ETF product at Invesco, said: “Exchange traded products ( ETP) are being used by a growing investor base, including retail investors who now have greater access through trading platforms. Investors are now constructing diversified portfolios using the breadth of ETPs for not only their core building blocks in equities and fixed income but also for alternative assets and more strategic allocations. Gold has long been used for diversification as it tends to perform differently to equities and bonds, helping investors to cushion their portfolios from sharp falls in those more traditional asset classes.”
