Which ETF Has the Most Gold?
Gold has long been used as an economic and political hedge. ETFs provide exposure to gold without having to purchase and store physical bullion directly.
GLD’s larger size enables it to offer greater liquidity and tight bid-ask spreads, and its lower costs make it an excellent long-term investment choice.
Gold has long been seen as an investment haven during economic uncertainty. Luckily, investors now have several exchange-traded funds (ETFs) available to them as a means of getting exposure to this precious metal without risking ownership of physical precious metals themselves.
iShares Gold Trust (GLD) is Wall Street’s go-to gold exchange-traded fund (ETF). Launched in 2004, GLD now holds $72 billion of assets – giving GLD strong market clout, tight bid-ask spreads, and robust options trading.
GLD’s innovative structure–a grantor trust that holds physical gold bullion–offers cost-effective access to this precious metal without the hassles associated with owning physical gold. Furthermore, its relatively low portfolio turnover results in a lower expense ratio compared to other gold ETFs. Before investing, investors should carefully evaluate GLD’s investment objectives, risks, charges and expenses as outlined in its prospectus – read it thoroughly!
2. Market Vectors Gold Miners ETF
This ETF gives investors exposure to companies active in gold mining. It tracks the performance of the NYSE Arca Gold Miners Index.
This Exchange Traded Fund (ETF) was released for sale in 2006. This ETF uses market capitalization weighting, meaning larger companies receive greater weighting. It was first offered for sale in 2006.
Gold mining companies are tied directly to the price of gold, as it costs them an agreed upon sum to extract each ounce. When gold prices increase, share prices of these companies rise as investors anticipate future cash flows will increase due to higher gold prices. This ETF boasts a correlation coefficient of 0.36 and beta of -0.03, an investor term that measures how similar two investments move in relation to each other over time. Low correlation coefficients indicate lower volatility and a beta score of one indicates greater investment movements compared to the broad market. SMSF Mate users can trade GDX units on the ASX using INDmoney with zero account opening fee, management fees or brokerage costs! Simply open an account in three minutes and transfer funds within 24 hours!
3. Market Vectors Gold Miners ETF
GDX ETF is an excellent way to invest in gold when its price rises, as gold mining companies’ profits depend heavily on it; their costs of extracting it out of the ground remain fixed, meaning any increase in price equates to an increase in profits for them.
This ETF is ideal for traders or investors bullish on gold and who fear inflation or future financial crises. Although this ETF falls within the commodity sector, its exposure is relatively narrow as only around 2% of materials sectors and 4% of overall S&P 500 index comprise this ETF’s exposure.
This ETF exhibits a correlation of 0.37 with the (ETF) Global Equities – Large Cap Sector Index and has an Alpha over its Peers score of 17% over the last 12 months and 3.37% since inception. You can purchase fractional shares through INDmoney by opening an US stocks account in less than 3 minutes.
4. Market Vectors Gold Miners ETF (GDXJ)
Market Vectors Gold Miners ETF (GDXJ) tracks a global index of junior mining companies producing and selling gold or related precious metals, with some of its top holdings including royalty/streaming gold producers such as Franco-Nevada (FNV) and Wheaton Precious Metals (WPM), as well as Royal Gold (RGLD).
GDXJ should only be considered by sophisticated investors who can tolerate its inherent risk. This ETF has an intricate relationship with gold prices; generally speaking, its value will increase when gold prices do. Conversely, when prices decline mining firms may see earnings decline significantly and cause this ETF’s value to plummet significantly.
Gold has long been seen as an asset that provides financial protection during times of instability and inflation, benefitting from falling interest rates as people turn away from yield-generating assets in favor of gold for safety. Unfortunately, however, gold prices can be highly unpredictable depending on supply and demand dynamics.
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