VanEck Cuts NUGG Fee Amid Gold Price Rally
VanEck is cutting its management fee on the gold bullion ETF NUGG in an effort to become the most cost-effective way for investors to access the price of gold on the Australian Securities Exchange (ASX).
The new fee, which will take effect from September 1, will be 0.14% per annum, down from 0.25%. This move will position NUGG as the lowest-cost physically backed gold exchange-traded fund in the market.
This decision comes at a time when gold prices are rising due to increasing uncertainty and inflation concerns. The precious metal has rallied to a near two-month high after US Treasury Secretary Scott Bessent announced that the US Treasury would increase its buyback of longer-dated US government bonds.
VanEck Asia Pacific chief executive Arian Neiron said, 'Gold has already jumped over 10% in August and we believe there are several long-term structural tailwinds that could sustain the rally.'