Invesco Physical Markets plc Physical Gold ETC
Why is this fund on our radar?
Exchange traded funds (ETFs) have become a popular starting point for many investors because they offer a simple, low-cost way to access broad markets. An ETF is essentially a basket of investments, usually shares or bonds, that aims to track the performance of a specific index, such as the FTSE All-Share in the UK or the S&P 500 in the US.
Although we believe high-quality active managers can add value over the long term, we also recognise that many investors want simple and transparent building blocks in their portfolios. With this in mind, we reviewed the large universe of ETFs with the aim of selecting options that provide clean, representative exposure to their markets at a low ongoing cost.
We selected this ETC because it is fully backed by physical gold and uses a clear, easy-to-understand structure. The fund is large and liquid, making trading simple, and has a competitive ongoing charge of 0.19%. Its transparency, security and availability on major investment platforms make it an accessible option for investors seeking direct exposure to gold as part of a diversified portfolio. This ETC fits our focus on low-cost, simple investment solutions that provide clean exposure to key markets and asset classes.
Portfolio
Although this is technically an ETC rather than an ETF, for investors it works in much the same way. Like an ETF, it trades on a stock exchange, can be bought and sold throughout the trading day, and provides easy access to the underlying asset, in this case, physical gold. The main difference is just terminology: ETFs usually track baskets of shares or bonds, whilst ETCs track a commodity like gold. For practical purposes, the experience for investors is the same, making it easy to include alongside the other ETFs in a portfolio.
The Invesco Physical Gold ETC gives investors a simple and practical way to participate in the gold market without having to buy, store, or insure the metal themselves. It holds physical gold securely in vaults in London, with each investment represented by a certificate backed by real gold. We favour physically backed gold options because they are straightforward and transparent: the fund actually owns the metal, so investors are exposed directly to movements in the gold price, rather than relying on derivatives or other complex structures.
