ETF Securities USA says the total assets under management of its ETFS Physical Swiss Gold Shares passed the USD500m mark on 8 June 2010.

It believes recent flows have largely been driven by investors’ lack of confidence in paper currencies coupled with an increasingly uncertain economic outlook.

The objective of the ETFS Gold Trust’s shares reflect the performance of the price of gold, less the trust’s expenses. The trust is open ended and is designed for investors who want a cost-effective and convenient way to invest in gold as well as diversify their precious metal holdings.

It has an expense ratio of 0.39 per cent per annum.

ETFS Gold Trust is backed by allocated gold bullion and stored in secure vaults in Switzerland by the custodian, JPMorgan Chase Bank. The shares represent an interest in physical gold owned by the trust. The physical gold of the trust is subject to minimal counterparty or credit risks, which contrasts with other offerings that achieve bullion exposure through the use of derivatives.

William Rhind, head of sales and marketing for ETFS Marketing, says: “Reaching USD500m in such a short time is great news. SGOL caters to investors who want their physical gold vaulted in Switzerland. With gold making new highs in multiple currencies, I’m confident that SGOL can continue to appeal to investors.”