Monday , 22 October 2018

A Look At Several Gold ETF Alternatives – Which Is Right For You?

Although, on one hand, geopolitical risks have increased the appeal of Gold ETFs as safe-haven investments, a rising greenback and fears of rising interest rates are weighing on their performance. This article discusses some ETFs focused on providing exposure to the space…

The original article has been edited here for length (…) and clarity ([ ]) by munKNEE.com – A Site For Sore Eyes & Inquisitive Minds – to provide a fast & easy read.

SPDR Gold Shares ETF (GLD)

This fund offers physical exposure to gold seeking to track the performance of gold bullion and might turn out to be a cost-efficient way of gaining exposure to the commodity even after accounting for the fund’s fee…of 40 basis points a year. It has AUM of $36.0 billion and has returned 6.2% in a year…

iShares Gold Trust ETF (IAU)

This ETF seeks to provide exposure to the price of gold bullion and can be used as a means to attain portfolio diversification or achieve hedging targets. It has AUM of $11.2 billion and charges a fee of 25 basis points a year. It has returned 6.3% in a year…

ETFS Physical Swiss Gold Shares ETF (SGOL)

This fund aims to track the performance of gold bullion before fees and expenses and is a convenient way of gaining exposure to the metal. It has AUM of $1.1 billion and charges a fee of 39 basis points a year. It has returned 6.3% in a year…

Another way of gaining exposure to the metal is through ETFs investing in commodity futures. Let us discuss one such ETF.

PowerShares DB Gold Fund (DGL)

This fund is appropriate for those looking for a cost-efficient way of investing in commodity futures. However, since this fund invests in the futures markets, it is not deemed suitable for all investors owing to the highly speculative nature of the investments. It has AUM of $193.5 million and is relatively expensive as it charges a fee of 75 basis points a year. It has returned 5.3% in a year.

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