1Wk·

I have a question for the community:

I'm currently looking for an ETC for gold. So far I've mostly focused on $WGLD (-0.14%) and $EWG2 (-0.64%) so far. Unfortunately, my custody account offers me no fee advantage with either option. In addition, the $WGLD (-0.14%) seems to allow physical delivery of the gold in 1g denominations but probably has a TER of 0.16%. The $EWG2 (-0.64%) only allows delivery in 1g through additional fees. To my questions:


  • How can the $EWG2 (-0.64%) have no fees, how do they earn money?
  • In addition, bearer bonds are not subject to deposit protection. I am therefore wondering what the insolvency risks could be, since everything is collateralized with gold anyway. Robbery of the gold?
  • What is the difference between EUWAX Gold I and EUWAX Gold II?


Thank you! ☺️

3
6 Comments

profile image
1. the money is collected through the fees you mentioned for u100g delivery and through the slightly different price per gram when buying shares in the ETC. Example: 1g gold on the exchange for 81€. When buying via the EGC €81.20. Plus the associated fees on delivery.
2. exactly. The risks consist of embezzlement, mismanagement or simply (and this is the most acute
most acute case) by a loss in the price of the gold. E.g. you bought gold for 5000€, gold is suddenly only worth 1€. You can imagine the probabilities yourself.
3. the difference lies in the investment behavior of investors. With EUWAX 2, delivery to the nearest gram is possible, which can also have a corresponding impact on tax treatment.
11
Show answer
View all 2 further answers
profile image
Does one share of WGLD represent 1/10 ounce of gold or how does the price come about?
Join the conversation