Article Gold investing made easier with ETCs

13 August 2026
Several gold bullion bars arranged on a bright blue background.

Key takeaways

  • The price of gold often moves differently than equity and bond prices. Therefore, adding it to a portfolio may help spread the risk that everything falls in value at the same time. 

  • Buying gold bars or coins may be inconvenient for some investors. A gold exchange-traded commodity (ETC) offers a simpler way to get the same exposure.

  • Invesco offers cost-efficient ETCs that are backed by physical gold but are simple to buy, sell, and own.

Gold has been sought after for thousands of years, from bars and coins stashed in secret vaults to jewellery that was worn with pride. Modern investors still value gold for the same reasons the ancients did — but buying, storing, insuring, and selling piles of gold may be inconvenient for some. However, there are now ways for investors to gain the potential benefits of gold without those inconveniences.

Learn how the Invesco Physical Gold ETC and the newly launched Invesco Physical Gold II ETC could help you add gold to your investments.

Four reasons to consider investing in gold

Interested in adding gold to your portfolio? You’re not alone. Many investors seek to own gold for a few simple reasons. Please refer to the bottom to see our full list of investment risks. 

  • Gold often moves differently from stocks and bonds, which means it may help diversify a portfolio when other investments are struggling.
  • The gold price can be volatile, as we’ve seen this year, rising or falling quickly. But it has maintained long-term value (as shown in the charts below). That’s because it’s scarce, durable, and can't be printed or devalued by a central bank.
  • The gold price does not rely on just one source of demand. It is used in jewellery and high-end technology and is also held by investors and central banks. 
  • Gold isn't issued by a company or a country, so its value doesn't rely on another entity doing well financially or someone else paying you back.

Why consider an ETC for gold exposure?

While gold can be appealing, investing in this precious metal hasn’t always been so simple. Buying physical bars or coins means dealing with storage, insurance, and the hassle of selling them when you want to. For some people, that extra effort may outweigh the benefits.

A gold exchange-traded commodity, or ETC, is one way to get exposure to gold in a simple, transparent, and cost-efficient investment. Here's how a gold ETC works:

  • ETCs trade on major European exchanges, so you can buy and sell ETC certificates like stocks or bonds.
  • Each ETC certificate represents a specific amount of physical gold, held in secure vaults.
  • You pay a single, transparent annual charge instead of premiums, shipping, or storage fees.

In short, an ETC lets you own gold directly without having to keep bars or coins in a safe.

Two ways to invest in gold with Invesco

Invesco offers two ETCs that are backed by physical gold, each built on the same foundation but designed for different investor needs.

  • Invesco Physical Gold ETC was launched in 2009 and is currently one of the largest gold ETCs in Europe.1 It charges a fixed annual fee of just 0.12% per year, one of the lowest-cost gold investments in Europe1, and is backed by physical gold bars held in J.P. Morgan's London vaults. It's also available in euro and pound sterling currency-hedged versions, which can help reduce the risk of exchange-rate fluctuations, at the same fixed annual fee of just 0.12% per year.
  • Invesco Physical Gold II ETC launched in 2026, and it shares the same structure, the same vaults, and the same low annual fee. But it may appeal to investors who want to start small or add gold to their portfolio gradually, including through savings plans. Why? Each Invesco Physical Gold II ETC certificate represents 1/1,000th of a troy ounce of gold, compared with 1/10th for Invesco Physical Gold ETC certificates. Because each of its certificates represents less gold, Invesco Physical Gold II ETC typically has a lower price than Invesco Physical Gold ETC.

Explore both Invesco Physical Gold ETCs to see if one is right for you.

Learn about our ETCs

Past performance is not a reliable indicator of future returns. Source: Bloomberg, in USD, from 1 July 2025 to 30 June 2026. Gold can be volatile. It pays no interest and no dividends – its value can rise, but it can also fall.

Standardised rolling 12-month performance of the gold price

May 2025 –

May 2026

May 2024 –

May 2025

May 2023 –

May 2024

May 2022 –

May 2023

May 2021 –

May 2022

38.70%

39.57%

19.54%

6.84%

-3.22%

Source: Invesco, Bloomberg L.P., FactSet. Based on the LBMA Gold Price (USD). Returns may increase or decrease as a result of currency fluctuations.

Frequently asked questions

What are ETCs?

ETCs, or Exchange-Traded Commodities, are investments that trade on stock exchanges and aim to track the price of a commodity such as gold. They allow you to gain exposure to the price of that commodity without having to own or store the commodity yourself. An ETC that invests solely in one commodity, such as gold, is not diversified. This lack of diversification is one of the differences between ETCs and funds, including Exchange-Traded Funds (ETFs), which are required to be diversified.

Are the ETCs invested in gold?

Our Gold ETCs use your investment to purchase physical gold bars, which are stored securely in J.P. Morgan’s London vaults. Gold bars worth at least the total value of the ETC are held, which is what is meant by “full physical backing” in gold. A full list of these bars is available on our website. Independent inspectors check the gold twice a year, and once annually, the inspection is accompanied by our auditors.

How closely do our Invesco Physical Gold ETCs track the gold price?

Our Gold ETCs are designed to provide direct exposure to the price of gold. They aim to provide the performance of the gold price, minus the ETC’s fixed annual fee of 0.12%.

How is the gold price set?

The gold price is determined through an electronic auction held twice daily in London. This benchmark, known as the LBMA Gold Price, is widely used for pricing and is quoted in US dollars per troy ounce of gold. The LBMA (London Bullion Market Association) is a trade association that oversees the London bullion market and sets standards for gold and other precious metals trading.

Can I receive a physical delivery of gold when selling?

Physical delivery is possible under certain conditions, such as having an LBMA clearing account. Further details on the requirements for physical delivery can be found in the prospectus, which is available on the Invesco website.

What is a currency-hedged share class?

For investors looking to reduce the impact of movements in the exchange rate between the US dollar (gold is generally priced in US dollars) and the investor’s local currency, we offer share classes with the currency hedged into British pounds or Euros (for the Invesco Physical Gold ETC). This hedging mechanism is intended to negate the change in the exchange rate between the two currencies, usually minus a fee, which could have either a positive or negative impact on performance.

How does Invesco Physical Gold II ETC differ from the Invesco Physical Gold ETC?

Invesco’s physical gold ETCs both track the LBMA Gold Price and are fully backed by physical gold, but they differ in gold entitlement per certificate, as shown below.

  • Each unit of the Invesco Physical Gold II ETC is backed by 1/1000th of a fine troy ounce of gold.
  • Each unit of the Invesco Physical Gold ETC is backed by 1/10th of a fine troy ounce of gold.
  • This means because each certificate represents less gold, Invesco Physical Gold II ETC typically has a lower price, allowing investors to start with a smaller investment.

Why do some investors believe holding physical gold is inconvenient?

Buying, storing, insuring, and selling piles of gold involve logistics decisions on top of investment decisions. For example, keeping gold at home may present the risk of theft, while the ongoing costs of insurance and professional vault storage may be higher than the costs of an ETC. 

Getting started

Explore both Invesco Physical Gold ETCs to see if one is right for you.

Learn about our ETCs

Related insights

  • Footnotes

    1 As of 29 May 2026.

    Investment risks

    Value fluctuation: The value of investments, and any income from them, will fluctuate. This may partly be the result of changes in exchange rates. Investors may not get back the full amount invested.

    Limited recourse: If the issuer cannot pay the specified return, the proceeds from the sale of the precious metal will be used to repay investors. Investors will have no claim on the other assets of the Issuer.

    Commodities: Instruments providing exposure to commodities are generally considered to be high risk which means there is a greater risk of large fluctuations in the value of the instrument.

    Currency hedging – ETCs: Currency hedging between the currency in which the underlying precious metal is typically quoted and the currency of the certificates may not completely eliminate the currency fluctuations between those two currencies and may affect the performance of the certificates. 

    Important information

    All information is provided as at 30 June 2026, sourced from Invesco unless otherwise stated.

    This is marketing material and not financial advice. It is not intended as a recommendation to buy or sell any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication.

    Views and opinions are based on current market conditions and are subject to change. All investment decisions must be based only on the most up to date legal offering documents. The legal offering documents (Key Information Document (KID), Base Prospectus and financial statements) are available free of charge at our website www.invesco.eu and from the issuers. 

    LBMA Gold price is a trademark of Precious Metals Prices Limited, is licensed to ICE BENCHMARK ADMINISTRATION LIMITED (IBA) as the administrator of the LBMA Gold Price, and is used by Invesco with permission under licence by IBA. The full version of the IBA disclaimer is available at etf.invesco.com (select your country and navigate to the Documents section on the product page).

    If investors are unsure if this product is suitable for them, they should seek advice from a financial adviser.