Global X cuts fees on gold ETF

Global X is reducing the management fee on the Global X Gold Bullion ETF (GXLD) from 0.15% to 0.14% per annum, effective September 1.

This comes after VanEck cut management fees on its gold ETF last week, also to 0.14% per annum.

Global X said the move means GXLD will continue to be the lowest cost option for Australians to access gold based on investment management fees and trading spreads.

Global X said the announcement follows a strong rebound in investor demand for gold ETFs. After significant industry outflows in June, Australian investors returned to the asset class in July, directing $334 million into gold bullion and gold mining ETFs, making it the fourth-strongest month on record for the category.

More than half of those inflows, $181 million, were invested in Global X's gold ETF suite of GOLD, GXLD and GHLD, it said.

Global X chief executive Alex Zaika said recent flow trends suggest Australian investors are becoming more confident allocating to gold through different market environments.

"What's notable is not just the strength of demand for gold, but how investors are responding to periods of weakness. After outflows in June, investors returned strongly in July, suggesting many increasingly view pullbacks in the gold market as buying opportunities rather than reasons to reduce exposure," he said.

"We're seeing more investors use gold as a long-term strategic allocation within diversified portfolios. Gold's role today extends beyond traditional safe-haven investing, with many investors recognising its ability to diversify portfolios and help preserve purchasing power over time."

Since 1 July, investors have poured $321 million into Global X gold ETFs, with more than $120 million invested last week alone, it said.

Zaika said the fee reduction reinforces GXLD's position as a dedicated solution for investors seeking low-cost access to physical gold.

"As investors become more sophisticated in how they use gold, they're increasingly selecting products that align with specific objectives," Zaika said.

"GOLD has become the preferred vehicle for investors seeking liquidity and efficient trading, while GXLD is designed for investors focused on low-cost, long-term exposure to physical gold. GHLD provides an alternative for investors seeking currency-hedged exposure."