VanEck lowers bullion ETF fee in bid for gold leadership

Mon Aug 24 2026

VanEck is cutting the management fee on its gold bullion ETF in a bid to become “the most cost-effective way for investors to access the price of gold on the ASX.”

The fund, which trades under the ticker NUGG, will slash its management fee from 0.25 per cent per annum to 0.14 per cent from the start of September, undercutting the fees of competing options.

It comes as gold rallied to a near two-month high last week after US Treasury Secretary Scott Bessent announced the US Treasury would increase its buyback of longer-dated US government bonds. As of 24 August, gold is up above US$4,500 an ounce.

The turnaround for the precious metal, which had been in a standstill since its blockbuster year in 2025, is being viewed by many analysts as sustainable, who determined gold’s structural case remains intact, supported by continued central bank buying, de-dollarisation, and elevated policy and geopolitical uncertainty.

“Gold has already jumped over 10 per cent in August and we believe there are several long-term structural tailwinds that could sustain the rally,” VanEck Asia Pacific chief executive Arian Neiron said.

“Central banks continue to diversify their reserves, inflation remains a risk and recent US treasury bond buyback signals concerns around rising government debt and the interest burden.”

Improving sentiment has already been showing up in investor flows, with Australian-traded gold ETFs recording their largest month-on-month turnaround in net flows on record, swinging from $253 million in outflows in June to $238 million in inflows in July.

Cashing in on renewed interest, NUGG is positioning itself as the most affordable way to gain exposure to the gold price on the ASX.

According to VanEck, the ETF differs from other gold bullion options as it is physically backed by Australian-sourced gold and investors have the option to convert their ETF holdings into physical gold at The Perth Mint.

While the fund’s one-month return to 31 July — prior to gold’s price turnaround — was 1.62 per cent, its one-year return to the same date was 11.62 per cent, and its three-year annualised return was 24.84 per cent, according to its website.

With its new fee, NUGG will dethrone Global X’s gold bullion option, GXLD, of its claim as the “lowest cost physically backed gold exchange traded fund in the market.” Launched in 2024 as a “cost-effective” gold-backed ETF, GXLD charges a management fee of 0.15 per cent per annum.

As of 20 August, its one-year return was 20.93 per cent, according to the fund’s website.

NUGG will also edge out the ETP Perth Mint Gold Structured Product (PMGOLD), which charges 0.15 per cent.

Other low-cost gold bullion ETFs on the ASX include the iShares Physical Gold ETF, GLDN, which charges a management fee of 0.18 per cent. Its one-year return to 31 July was slightly higher than NUGG’s at 11.69 per cent. As well as the bullion option, VanEck also offers a gold miners ETF, GDX, which provides exposure to companies involved in the gold mining industry. Its one-year return to 31 July was 13.96 per cent and its management fee is 0.53 per cent.

Source: http://in.reuters.com