Gold investors will now have access to a new low-cost gold (XAUUSD:CUR) backed ETF that also carries an ESG component. The Franklin Responsibly Sourced Gold ETF (FGLD) is set to start trading shortly on the New York Stock Exchange.
FGLD aims to offer investors access to gold sourced from London Bullion Market Association’s accredited refiners that are required to demonstrate their efforts to respect the environment and combat money laundering, terrorist financing and human rights abuses in accordance with the LBMA’s responsible gold guidance.
FGLD comes forward with an expense ratio of 0.15%, which is cheaper than most other popular gold funds such as the SPDR Gold Trust ETF (GLD), iShares Gold Trust ETF (IAU), and the Aberdeen Standard Physical Gold Shares ETF (SGOL).
GLD has a cost of 0.40%, IAU comes in at 0.25%, and SGOL has an expense ratio of 0.17%.
However, the new Franklin Responsibly Sourced Gold ETF (FGLD) has a slightly higher expense ratio than the World Gold Trust – SPDR Gold MiniShares Trust (GLDM), which has an expense ratio of 0.10%.
With regards to the launch, David Mann, Head of Global Exchange-Traded Funds Capital Markets stated: “We believe it’s a fantastic option for investors looking to add gold investments to their portfolios, offering a compelling way to participate in the physical gold market, with the added peace of mind of knowing that this gold is responsibly sourced.”
See below a 2022 performance chart on the price of spot gold.