What is the Best Gold ETF to Invest In?
GLD is the most well-known gold ETF and follows its price. With an outstanding track record and sizeable asset base, this financial product has quickly become one of the go-to choices among investors.
SGOL (formerly GraniteShares Physical Gold ETF) provides investors with an affordable option for investing in gold. The fund tracks the spot price minus expenses and stores its bullion in London vaults; additionally, its issuer conducts audits twice annually of these storage vaults.
GLD
GLD, one of the market’s most widely held ETFs, provides an easy and straightforward way to gain exposure to gold bullion. Held within secure vaults for safekeeping purposes, its price should track with spot prices for precious metal.
GLD, as the world’s largest gold ETF, currently manages approximately $59 billion of assets under management and offers excellent liquidity; an estimated daily volume of 8.5 million shares trading occurs. GLD boasts an excellent track record and charges an expense ratio of only 0.4%; however, its higher share price may make it less accessible to investors who lack fractional trading capabilities through their brokers.
SPDR Physical Gold ETF (SGOL), from the same issuer as GLD, holds bars of physical gold stored in vaults in London and Zurich that are regularly inspected. With lower total assets and shorter track record than IAU but offering an affordable 0.17% expense ratio and transparency through listing of gold bars held by it on its website.
GDX This broad gold mining ETF provides exposure to some of the biggest names in the industry as well as smaller firms that specialize in certain geographic regions or types of production. Investors seeking diversified exposure to gold may appreciate GDX as it has low correlation to stock markets and can help smooth portfolio returns.
Junior Gold Miners ETF (JNUG) This ETF gives investors access to junior gold mining companies with potential for greater upside as prices rise, but with greater risk than established producers. Investors who can tolerate volatility should avoid this fund as it has a high failure rate and may struggle to pay dividends if prices decline significantly.
Investors should also keep inflation in mind when selecting an ETF to invest in, as higher rates can erode the value of their holdings over time. Some funds in this category offer protection from inflation through derivatives.
Why Invest in a Gold ETF? Gold has long been considered a safe haven asset and often outperformed other assets during periods of geopolitical turmoil. Now more than ever before, investors are turning to this storied commodity as a means to diversify their portfolios against any shifting global conditions. ETFs provide retail investors with easy exposure to this popular metal, making position changes easier as situations change quickly. Taking time to review fees and expenses of each ETF could significantly affect long-term returns – finding their best choice can help investors find what would work best suits them personally.
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