Source, one of the largest providers of Exchange Traded Products in Europe, saw record demand for its Source Physical Gold P-ETC (SGLD) product in January.
SGLD was the most actively traded gold Exchange Traded Commodity (ETC) in Europe so far this year1 and saw the largest inflows of any European gold ETC, attracting $300 million of new assets in January. This compares to less than $250 million of inflows over the whole of 2015. Total assets in the product now stand at more than $2 billion.1
SGLD saw $8 million average daily turnover on-exchange in the past six months1 with as much as $97 million traded in a single day. On its most active day, the bid-offer spread for SGLD remained at just 3-4 basis points (bps).
Christopher Mellor at Source, said: “ETFs are a great barometer of market sentiment. Given the challenging start to 2016 and nervousness in the markets, there is clearly a renaissance in gold as a haven. We have seen record demand for our gold product, with investors attracted to its very low cost and high liquidity. Given the on-going concerns over the global economy, we expect demand to remain strong.”
At 29 bps, SGLD has one of the lowest annual management fees of any gold ETC in Europe. Its low Total Expense Ratio and stable bid-offer spread of around 4 bps mean that it has the lowest total cost of ownership.
1 As at 1 February 2016