Invesco Physical Gold ETC is the largest European Gold ETF, with physical gold holdings at 239 tons. Xetra Gold with 238 tons of gold is the second largest European gold ETF in terms of amount of physical gold held in its asset. The list of the largest European Gold ETFs and the change in the quantity of gold holdings are explained in this article.
Over the last decade economic growth and interest rates in Europe lagged US and other global regions. This led to a decline in investment performance of Equities and yield on bonds based in Europe. Investment in gold surged in this period in Europe and Exchange Traded Funds accounts for a large portion of Europe’s gold investments. Currently with 1,573 tons of gold invested by ETFs based in Europe. European ETFS accounts for 45% of the total holding of gold by ETFs.
Invesco Physical Gold ETC is the largest European Gold ETF, with holding of physical gold at 239 tons at the beginning of 2022. Xetra Gold with 238 tons of gold is the second largest European gold ETF in terms of amount of physical gold held in its asset. The list of the largest European Gold ETFs and the change in the quantity of gold holdings are explained below.
Which is the largest Gold ETFs in Europe?
The following table summarizes the gold holdings of the largest Exchange Traded Funds in Europe.
|Rank||Name of ETF||Amount of Gold in Tons|
|1||Invesco Physical Gold ETC||239|
|2||Xetra Gold ETF||238|
|3||ishares physical gold ETC||221|
|4||ZKB Gold ETF||164|
|5||Wisdom Tree Physical Gold ETF||95|
|6||Amundi physical gold ETC||69|
|7||Wisdom Tree Physical Swiss Gold||63|
|8||Gold bullion Securities ltd||63|
|9||Xtrackers Physical Gold ETC||48|
|10||Pictet CH Precious Metal Fund||47|
1. Invesco Physical Gold ETC
Invesco Physical Gold ETC is the largest European Gold ETF based on the amount of physical Gold Investment. The ETF currently holds 239 tons of gold. Invesco physical Gold ETC is traded in London stock exchange and it is the largest Sharia complaint Gold ETF in the world. Expense ratio of Invesco Physical Gold ETC is very low at 0.12%.
In the last 7 years since 2015 assets under management of Invesco Physical Gold ETC, has grown significantly from 48 tons in 2015 to 239 tons in 2022. Every year in the last years this ETF have increased its gold holdings. Notably in 2020 in Invesco Physical Gold ETC increased $84 tons of gold to its holding. With steadily increasing holding of gold bullion Invesco Physical Gold ETC maintains its rank as the top gold ETF in the Europe and England.
2. Xetra Gold ETF
Domiciled in Germany and listed in Frankfurt stock exchange Xetra Gold ETF is the second largest gold ETF in Europe. Xetra Gold currently holds 238 tons of gold in physical asset. Unlike most other ETFs Xetra Gold ETF trades in Euro per gram of gold. This ETF claims that it’s funds are 100% backed by physical gold. The ETF attracts large investor capital flows in the last 6 to 7 years and gold holdings have risen sharply to 238 tons.
From 59 tons in 2015, The holding of physical gold significantly increased by Xetra Gold. Most of the acquisition by the fund was done in 2016 and 2017. Surprisingly in 2020 the fund has not increased its holding substantially.
3. Ishares physical gold ETC
With 221 tons of gold under management, iShares Physical Gold ETC is the third largest European Gold ETF and second largest gold ETF based UK. iShares Physical Gold ETC trades in London stock exchange and the fund claims to be backed by 100% physical gold. Expense ratio of iShares Physical Gold ETC is 0.12%.
Ishares physical gold ETC is the fastest growing Gold ETF. The amount of physical gold held by the ETF grew from 12 tons of golden 2015 to 221 tons in 2022. In the year 2020 the fund increased its gold holdings significantly as it acquired 91 tons of gold in just one year. Although the funds exposure to gold reduced slightly in 2021, Ishares physical gold ETC remains as a third largest gold ETF in Europe.
4. ZKB Gold ETF
Domiciled in Switzerland, ZKB Physical Gold ETF holds 164 for tons of physical gold. It is the largest Swiss based gold ETF. Started in 2006 ZKB Gold ETF is one of the oldest gold ETFs in Europe. The ETF is 100% backed by physical gold and the fund gives investors the right to take delivery of physical gold bars.
ZKB Gold ETC made the largest of gold accusations in 2022 with a purchase of 93 tons of gold to double the quantity of gold holdings from 2021. There is a major change in strategy and outlook of ZKB Gold, as the holdings of the fund was consistently declining from 2010. This increased investment in 2022 is testament of the fund’s expectation on future increase in gold prices.
5. Wisdom Tree Physical Gold ETF
Wisdom Tree Physical Gold ETF, currently hold 95 tons of physical gold in its assets. The fund claims that 100% is of investments are backed by physical gold. Wisdom Tree Physical Gold ETF has an expense ratio of 0.39%.
Gold holdings of Wisdom Tree Physical Gold ETF have reduced in the last 4 years. It is one of the few ETFs sold more gold than it purchased in 2020.
6. Amundi physical gold ETC
Amundi Physical Gold ETC is the largest French gold ETF and sixth largest European gold ETF with 69 tons of gold under management. It is the most recently formed large gold ETF with holdings above 50 tons. The ETF started in 2019 with 22 tons of gold and in each year since inception it increased holding of gold in portfolio. In 2020 Amundi Physical Gold ETC purchase 32 tons of gold followed by 14 tons in 2021.
Amundi Physical Gold ETC have a low expense ratio of 0.12%. The ETFS is benchmarked to the daily price changes of physical gold, the fund manager claims that the fund is 100% backed by physical gold bars.
7. Wisdom Tree Physical Swiss Gold
Wisdom Tree Physical Swiss gold holds 63 tons of physical gold in its portfolio. The fund maintains 100% of assets backed by physical gold. The physical bullions are stored in vaults based in Zurich and Wisdom Tree Physical Swiss gold has one of the lowest Expense Ratio at 0.15%.
Started in 2010 with 4 tons of gold has grown steadily in the last 12 years. Gold holding of wisdom tree physical Swiss gold has grown significantly since 2018 as assets increased from 18 tons in 2018 to 63 tons in 2022.
8. Gold bullion Securities ltd
Gold Bullion securities ltd maintains 63 tons of physical gold in its portfolio. This is one of the oldest gold ETFs, which started in 2003 with 23 tons of gold under management. Assets under Management increased steadily until 2012 to reach 139 tons. Quantity of gold holdings of Gold Bullion Securities Ltd is declining steadily since 2012 and the fund reduced gold holdings every year since 2016.
Managed by Wisdom Tree, the vault of Gold Bullion Securities is located in London. Expense ratio of the fund is at 0.40%.
9. Xtrackers Physical Gold ETC
Xtrackers Physical Gold ETC maintains 48 tons of gold in its portfolio. The fund tracks the price of gold spot prices and maintains a low expense ratio of 0.25%.
Started in 2010 with holding 2 tons of gold, Xtrackers Physical Gold ETC increased sharply in 2018 to 2020. Since reaching 68 tons in 2019, the fund’s assets have reduced to 48 tons currently.
10. Pictet CH Precious Metal Fund
Pictet CH Precious Metal Fund maintains 47 tons of gold in its portfolio. This ETF started in 2010 with 2 tons of gold, has significantly increased its quantity of physical gold in January 2022 to 47 tons from 17 tons in 2021.
Expense ratio of Pictet CH Precious Metal Fund is at 0.38%.
Size of gold holdings is not the only criteria to evaluate the suitability of a gold ETF to invest. Due care is required when choosing an investment in gold ETFs . Similar to all other investments investments in gold ETF carries risks consultation with a qualified investment adviser is recommended while selecting any investments.
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