Gold ETF - ZKB vs Invesco

Hello there, does someone have a perspective on the best gold ETF (physically secured)? The NZZ “The market” seems to often suggest the Zurich Kantonalbank ETF as a gold ETF with 0,4% costs (where gold is kept with ZKB). Invesco is TER 0,19% and the biggest ETF. Anyone having a recommendation? Does anything speak against INVESCO? Thanks a lot already

I think it shouldn’t matter unless you really want the physical gold to be local

Or opt for a physical delivery at redemption.

ZKB offers it (12.5kgs gold bar only). Not sure for Invesco.

If you don’t care about the custody of the gold (swiss vs foreign) and don’t plan for a physical delivery, go for the cheapest ETF

If physical gold in Switzerland with potential physical redemption is important, the UBS Gold ETF with a 0.23% TER would be an alternative to the ZKB ETF. 0.4% TER sounds high to me.

Thanks a lot everyone. Much appreciated. I did not see the UBS one before. When I go to justetf, it does not come up (nor the ZKB by the way) - any idea what I need to be doing different to find ETFs that are good for CH Investors?

Have you selected the right country on justETF?

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I also consider the counterparty risk. With gov guarantee, whatever securities ZKB are issuing, should be safe. I hold ZGLD, ZSIL and ZPLA with them.

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I would check the fine print on getting the physical upon redemption. Typically, it comes with nice fees (for the bank) …

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thank you everyone, this was helpful

Why does ZKB with a higher TER (0.4% vs 0.12%) have a better performance than Invesco (both in USD)?

Invesco:

ZKB:

There’s some current dislocation between various gold storage facilities (many people are moving holding from London to New York).

Invesco is tracking the London gold price, I assume ZKB holdings aren’t impacted as much since they’re physically in Switzerland.

But isn’t that happening only recently? The performance difference in the images goes back a few years.

The difference seems more pronounced for the past few months. But yes you’re right there’s also a gap before, there might be other fees/inefficiencies besides the TER? (maybe physical handling fee, more redemption, etc.?)

One explanation maybe

That’s already what I mentioned in the earlier post :slight_smile:

Maybe JustETF (linked behind those performance tables) is Just™ drunk and should just go home and sober up?

Here’s what Bloomberg has to say about the relative performance:

I would expect the relative performance of Invesco and ZKB trailing the index to be mainly due to fees.

And I am not surprised ZKB is trailing the pack.

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