Invesco Physical Gold

ETF description

This ETF is designed to offer investors exposure to the gold market while mitigating the risk of currency fluctuations. It holds physical gold and hedges out the currency exposure to the British pound. This makes it suitable for investors looking for a way to invest in gold while minimizing the effect of currency exchange movements on their investment.

This ETF may appeal to those who want to diversify their investment portfolio with a commodity like gold. The ETF allows investors to own gold without the need for physical storage, providing a convenient way to gain exposure to its price movements.

Issuer details

Invesco is one of the world’s largest ETF providers with over US$680 billion globally in ETF assets under management (as at 31 March 2024). It offers over 140 EMEA ETFs spanning regions and strategies across equities, fixed income and commodities.

Its culture of innovation lets it find new opportunities for investors, as well as ways to improve the performance of core ETF exposures.

Index details

This ETF tracks the price of gold, which is influenced by several factors.

Like most commodities, the balance between how much gold is available (supply) and how much people want to buy (demand) can affect its price. Also, in times of economic uncertainty or stock market fluctuations, investors may turn to gold as a ‘“safe haven”’, which can raise gold prices. As gold is priced in US dollars, the strength of key currencies, especially the U.S. dollar, impacts gold prices. Lower interest rates reduce the opportunity cost of holding non‑yielding assets like gold, potentially increasing its appeal and price.

These factors are interconnected, and can affect gold prices in complex ways.