VanEck reduces management fee for NUGG

Oksana Patron

30 May 2023

VanEck Australia has reduced the management fee for one of its exchange traded funds (ETF), Gold Bullion ETF (NUGG) to 0.25% per annum to “enable more investors to gain exposure” to this strategy.

In the announcement made to the Australian Securities Exchange (ASX), the firm said NUGG was different from other gold bullion ETFs as it was physically backed by gold bullion sourced only from Australian gold producers and investors were able to convert their ETF holdings into physical gold at The Perth Mint.

At the same time, it was also the most cost-effective physically backed gold ETF on ASX, according to VanEck.

“The fee reduction comes at an opportune time for investors given the current market volatility. History has shown, when confidence erodes, or when there is extreme volatility in markets, investors turn to gold,” the firm said

“Importantly, with NUGG, investors can gain confidence from gold that is only Australian sourced and the ability to physically access the gold from The Perth Mint.”

The firm said also it hoped that new fee structure would encourage more investors and their advisers to consider NUGG for their gold exposure.