Which is the Best Gold ETF to Invest in?
Gold has long been seen as an insurance policy against various risks, such as inflation and currency fluctuations. While owning physical gold may be too costly or inconvenient to store, exchange-traded funds offer an efficient means of investing in this precious metal.
SPDR Gold Shares (GLD), fully backed by physical gold bullion, is widely considered the premier gold ETF available today and boasts one of the lowest expense ratios available to investors.
HDFC Gold ETF
Gold has long been considered an effective investment. Additionally, its protective qualities against inflation and stock market crashes makes it one of the best alternatives. Unfortunately, buying physical gold can be time consuming and costly.
Investment decisions often revolve around choosing between investing in gold mutual funds or ETFs based on one’s desired financial goals and amount they wish to invest. Ultimately, which option best meets those criteria should ultimately come down to personal preference.
To address this problem, fund houses have begun offering schemes that invest in gold ETFs. These ETFs track the value of physical gold, making money off its performance. Furthermore, gold ETFs offer significant liquidity and real-time pricing monitoring; therefore they make great alternatives for people without time to trade physical gold themselves as well as those seeking diversification through low-risk investments.
iShares MSCI Global Gold Miners ETF
The iShares MSCI Global Gold Miners ETF (RING) tracks an index made up of global equities that specialize in gold mining activities. This low-cost option gives investors exposure to gold.
Investors interested in gold have several investment options available to them when looking to diversify their holdings of this precious metal, including physical bullion or purchasing shares of an exchange-traded fund (ETF) that stores gold bullion in vaults while using derivatives to track its price. ETFs are popular as they allow access to this exposure quickly without the hassle of storage or transport.
As part of our evaluation of the best gold ETF to invest in, we considered several factors. These included its average bid-ask spread, trading volume and assets under management. Furthermore, we examined its standard deviation – an indicator of volatility relative to peers; higher standard deviation indicates greater volatility – as well as its expense ratio that indicates overall cost structure.
iShares Gold Trust
iShares Gold Trust (IAU) gives investors exposure to one of the world’s most sought-after metals. This exchange-traded fund (ETF) tracks physical gold bullion prices, making it a good option for diversifying portfolios during times of financial volatility.
As an ETF, IAU is subject to market risk; its price may rise or fall with overall stock market fluctuations. To mitigate this type of risk, diversifying into multiple stocks with low correlation can help.
This ETF is one of the largest of its kind, managing over $55 billion in assets under management. Due to its size and investment approach, this ETF provides stable exposure to gold prices directly while offering lower expense ratios than similar offerings such as SPDR Gold Shares. Furthermore, daily trading volume averages five million shares so it offers ample liquidity.
iShares Physical Swiss Gold Shares
Gold’s surge this month provides investors an excellent opportunity to diversify their portfolios while protecting against market fluctuations with ETFs that offer exposure to gold. Here are five ETFs with proven performance which may help build portfolios while providing protection from stock market instability.
The SPDR Gold Trust is one of the oldest and largest gold exchange-traded funds (ETF), managing over $37 billion of assets under management. It tracks gold bullion by holding physical bars in secure vaults; its low costs and liquidity make it an appealing option for investors looking for direct exposure to this precious yellow metal.
SGOL (iShares Physical Swiss Gold Shares ETF) provides another physically-backed gold investment option. This ETF stores physical gold in two JP Morgan vaults located in London and Zurich; certificate of ownership can be issued, along with statement of holdings on its website. While it charges slightly higher fees than GLD, its costs associated with shipping, insuring, storing physical gold are much lower, making SGOL eligible for precious metals discount tax exemption in many jurisdictions.