What ETF Has Gold and Silver?
ETFs (exchange-traded funds) are financial investments traded on stock exchanges that offer investors exposure to stocks, bonds, currencies or commodities. Like common stocks, ETFs may be purchased or sold like any other security.
Silver ETFs offer a convenient way of accessing its benefits without the burden of physical bullion ownership, which requires safe storage but could still be vulnerable in an emergency situation. But these funds come with counterparty risk.
Gold
Gold has long been seen as an asset that provides refuge in times of financial and political distress, often experiencing price increases as investors look for safe-haven assets that do not pay interest – gold being one such safe haven asset that stores value well.
SPDR Gold Shares (GLD) is an ETF that tracks the price of gold, providing investors with exposure without needing to purchase and store physical bullion. Other gold-based ETFs invest in stocks of companies mining or producing the precious metal or track an overall grouping of mining companies.
To access any precious metals funds, a brokerage account is essential. NerdWallet’s ratings of online brokers and robo-advisors can help you select one best suited to your needs by rating fees/minimums/investing choices/mobile app capabilities/platform for placing trades for ETFs you want to own. Once opened, look for platforms which allow trades in order to purchase them.
Silver
Precious metals like gold and silver offer inflation-beating returns, making them attractive as an inflation hedge. Although purchasing physical bullion may be prohibitively costly and cumbersome, ETFs provide access to these precious metals without physically owning any.
One popular silver ETF is the iShares Silver Trust (NYSE Arca: SLV), providing exposure to daily price movements of silver bullion. This ETF charges 50 basis points in fees annually.
Investors can invest in precious metals through exchange-traded funds (ETFs) that offer exposure to the mining sector. ETFs like abrdn Physical Precious Metal Basket Shares ETF (NYSE Arca: GLTR) offer exposure to both gold and silver mining stocks – often considered safe haven assets in times of economic and political instability – offering high volume trading with minimal expenses incurred; though note this ETF only backs futures contracts rather than actual physical metal assets.
Platinum
While gold and silver ETFs typically attract investor attention, investors might also benefit from diversifying their portfolio with platinum ETFs. Platinum is an extremely rare precious metal often found in jewelry or industrial products; ETFs of this metal tend to follow its price and charge an expense ratio fee in return. When selecting an appropriate fund for investing, make sure it offers high liquidity with low expense ratio fees so as to maximize long-term returns.
Investors seeking platinum exposure should consider the GraniteShares Physical Platinum Shares ETF (PPLT). This grantor trust features physical bullion holdings stored in secure vaults and prices its assets based on London Good Delivery specifications. Alternatively, there are various platinum futures-based exchange-traded notes (ETNs) which track price instead of holding any physical metal themselves; instead focusing on performance of an underlying index.
Other Precious Metals
ETFs that specialize in precious metals often include other precious metals like platinum, rhodium and palladium as well. Typically these funds track the price performance of an underlying precious metals benchmark asset to provide investors with exposure.
Some ETFs that specialize in precious metals offer physical commodity products, like Sprott Physical Silver Trust (SGOL). This closed-end fund holds unencumbered London Good Delivery silver bars without incurring any restrictions or additional expenses; 60 basis points is charged annually as fees.
When selecting an ETF that invests in precious metals, take care to assess its underlying assets, expense ratios and liquidity. Also keep market makers in mind; their presence can make buying and selling easier without altering commodity prices. Finally, evaluate its tracking error to gauge how closely its price movement matches up with that of its benchmark asset; the lower it is the better the tracking error will be; you should also examine trading volumes to understand how easy it is to buy and sell its shares.
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