Which Gold ETF Has the Most Gold?

Gold exchange-traded funds often attract attention during periods of market instability from investors looking to diversify their portfolios with gold. Each fund comes with different risks profiles, expense ratios and potential returns that investors should take into consideration before making their selection.

SPDR Gold Shares is one of the premier gold ETFs, providing direct exposure to physical bullion prices. Established in 2004, it remains among the most liquid investments available today.

1. Gold Trust ETF (GLD)

There are various ways to gain exposure to gold, such as purchasing physical bullion or stocks of mining companies. But if you want an economical approach, GLD might be your ideal investment vehicle.

GLD was initially launched in 2004, and is the world’s largest ETF backed by physical gold holdings. Each share in GLD represents ownership in one-tenth of an ounce of the precious metal and tracks daily changes in gold prices.

GLD can sometimes diverge from the spot price of gold, but its management team takes great care in keeping the fund near its target price by exchanging blocks of 100 shares daily for 10,000 ounces of metal. Furthermore, investors who hold it in tax-advantaged accounts like an IRA or 401(k) won’t owe taxes until reaching retirement age on withdrawals from GLD ETF withdrawals.

2. iShares Gold Trust ETF (IAU)

Gold has long been seen as an asset that can provide protection from inflation and market instability, serving as a diversifying element within portfolios or acting as a hedge against them.

iShares’ ETF provides investors with exposure to the price fluctuations of gold without worrying about storage, insurance and security risks associated with owning physical gold bars. It has an economical expense ratio and should form only part of any investment portfolio.

Gold as a commodity is sensitive to economic conditions, interest rates and geopolitical events that affect its price; therefore, when considering returns and how IAU may fit into your portfolio it’s essential that these factors be taken into account. IAU offers market-based pricing which facilitates easy buying and selling during regular trading hours at prices reflecting the spot price less any Trust expenses and liabilities which is subject to daily fluctuation.

3. Market Vectors Gold Miners ETF (GDX)

Market Vectors Gold Miners ETF (GDX) gives investors access to a broad selection of companies involved in gold mining. This ETF attempts to replicate as closely as possible the price and yield performance of the NYSE Arca Gold Miners Index prior to fees and expenses.

Gold has traditionally been recognized as an attractive way to protect wealth against inflation. Gold prices often benefit from periods of market instability and interest rate hikes; furthermore, since mining companies’ share prices tend to fluctuate with changes in gold prices.

Gold mining is an extremely capital-intensive endeavor. Mining companies must spend significant sums of money on equipment and exploration activities to produce more gold, which may cause their profits to fluctuate according to its price fluctuations, thus impacting their free cash flow.

4. Market Vectors Gold Miners ETF (GDXJ)

GDXJ, celebrating eight years later this year, is the second-largest gold mining ETF. It tracks the MVIS Global Junior Gold Miners Index which comprises small- and mid-cap companies that generate at least 50% of their revenues from gold mining activities.

These stocks tend to move in tandem with gold prices and their profits are tied directly to the cost of digging for gold, making them an excellent option when anticipating a bull market in gold prices or when interest rates decline as investors flee yield-generating assets.

However, investments like GDXJ can be extremely risky; their three-year standard deviation exceeds twice that of the S&P 500 index. Therefore, this fund is best suited for sophisticated investors who can manage risk. You can explore price movements of GDXJ in our charts section; trade this and other exchange-traded products via R StocksTrader in our Web terminal; sign up for a free trial now to try our platform and start trading!

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